Gold Futures Fall 13% in Q2, Worst Performance Since 2013

According to CNBC, gold futures fell more than 13% in the second quarter ending June 30, marking their worst performance since 2013. Despite being traditionally viewed as a safe-haven asset, gold showed significant volatility amid heightened geopolitical tensions this year, declining 21% following the Iran conflict after hitting record highs in January.

Experts debate gold's hedging effectiveness. Vanguard's Roger Aliaga-Diaz noted that while gold has a hedging role, it "may not be as consistent as people think," warning that stock market declines are not always offset by gold gains. However, JP Morgan Private Bank data shows gold averaged 1.8% returns in four-week periods surrounding major geopolitical shocks from 1985 to 2024, outperforming stocks and U.S. Treasuries. Financial advisors recommend maintaining gold allocations of 1-2% for long-term portfolio diversification rather than abandoning positions based on quarterly performance.