Gold inches higher; set for worst quarter in 5 as dollar shines

GOLD firmed on Thursday (Jun 30) as US Treasury yields dipped, but faces its worst quarter since early 2021, as the dollar cemented its place as the safe-haven asset of choice, amid top central banks adopting aggressive tactics against runaway inflation.

Spot gold was up 0.1 per cent at US$1,818.31 per ounce by 1.15 am GMT. US gold futures also firmed 0.1 per cent to US$1,819.70.

Benchmark US 10-year Treasury yields inched down, increasing the appeal of non-yielding gold.

The dollar ticked up towards recent 2-decade peaks, and could record its best quarter in over 5 years, making gold less attractive for buyers holding other currencies.

Gold prices, set to drop for a third straight month, have fallen about 6 per cent this quarter, their worst since the first quarter of 2021.

Bringing down high inflation around the world will be painful and could even crash growth but must be done quickly to prevent rapid price growth from becoming entrenched, the world's top central bank chiefs said on Wednesday.

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Rate hikes by central banks to fight inflation raise the opportunity cost of holding bullion, which yields no interest.

World Bank's chief economist Carmen Reinhart said she is sceptical that the US and global economies can dodge a recession, given red-hot inflation, sharp rate hikes and slowing growth in China.

Spot silver was flat at US$20.71 per ounce, platinum rose 0.3 per cent to US$919.68, and palladium gained 0.8 per cent to US$1,977.09. However, they were all still headed for monthly and quarterly losses. REUTERS