Gold posts worst quarter since 2013 as investors question its hedge role
Gold futures fall as gold’s hedge role faces scrutiny after a 13% Q2 drop See why advisers still favor modest allocations and long-term strategy
Gold futures fell more than 13% in the second quarter, marking the metal’s weakest quarterly performance since 2013. The decline came after gold touched record highs earlier in the year and as geopolitical tensions in the Middle East remained elevated.
The article says the selloff has led some investors to reassess gold’s reputation as a portfolio hedge. While gold can act as a diversifier and a store of value during geopolitical stress, advisers said it does not always move opposite stocks and can be volatile itself.
Experts cited in the piece suggested keeping gold allocations modest, often around 1% to 5% of a portfolio, depending on an investor’s goals and risk tolerance. They said the recent drop is a reminder to view gold as part of a longerterm allocation strategy rather than a shortterm trade.