WGC: Gold Recorded Best Quarterly Performance Since Q2 2020

SEATTLE (Scrap Monster): The World Gold Council (WGC) announced publication of Gold Market Commentary covering the initial quarter of the current year. As per the report gold delivered during the quarter and stood out as an effective hedge.

Gold prices reported second consecutive rise in Q1 this year. The prices were up by 8% during the quarter, ending the quarter at $1,942 per ounce. The yellow metal registered its best quarterly performance since Q2 2020. Also, it emerged as one of the best performing assets, especially in the midst of significant weakness that prevailed in both the equity and bond markets across the globe.

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The WGC report said that gold proved to be a reliable source of diversification of asset portfolio as well as a wealth creator, during the period which has witnessed high economic uncertainties and heightened volatility. The positive performance during the quarter was mainly driven by rapidly rising inflation, higher interest rates and unexpected geopolitical tensions.

Looking ahead, WGC expects the opposing forces of inflation and rising interest rates to have strong influence on gold prices in Q2 this year. A prolonged conflict in Ukraine will likely lead to sustained investment demand in gold, it noted.