Gold Plunges 16%, But Analysts See a Buying Opportunity

Gold suffered its worst quarter in over a decade, falling 16% between April 1 and June 30. The SPDR Gold MiniShares Trust (GLDM) lost significant value during this period, its lowest quarterly move since 2013. Its sibling fund, the SPDR Gold Shares (GOLD), also saw a notable decline, dropping from $424 to $368.

The sharp decline was attributed to rising real yields, a stronger dollar, and investors rotating into AI-focused equities. However, central banks continued to absorb gold at an unprecedented rate of roughly 1,000 tonnes annually, providing a structural demand floor for the market.

Analysts from major desks, including JPMorgan Chase and Deutsche Bank, trimmed their near-term price targets but maintained bullish long-term outlooks on gold. They cited the strong dollar and rising Treasury yields as short-term headwinds, but emphasized the metal's fundamental value proposition.