Gold, long considered a safe haven asset, is on track to end the quarter with a whopping 13% loss – its biggest three-month percentage decline since 2013. So, what’s behind this unexpected slump? According to market analysts, expectations of rising U.S. interest rates are a significant contributor.

The CME FedWatch tool, which tracks market expectations for Federal Reserve rate hikes, shows that traders currently price in three rate hikes this year, with a more than 60% chance of an increase in September. This heightened expectation of higher interest rates is likely to keep gold under pressure in the near term, as investors seek yield-bearing assets over non-yielding safe havens like gold.

Energy prices have also played a role in gold’s decline, as lower oil prices can reduce demand for the precious metal. Additionally, a resilient U.S. dollar has made gold less attractive to investors looking for a hedge against currency fluctuations.

While these factors may be contributing to gold’s current slump, it’s important to remember that gold has historically performed well during times of geopolitical uncertainty. As such, some analysts believe the metal could rebound in the long term as investors seek safe havens in times of turmoil.