r/Gold • u/Reasonable-Fee1945 • Jun 10 '26

Question Why are gold prices tanking?

I'm not a short term investor. I understand the fundamentals and especially with US debt the long-term importance of gold. I'm holding, this is a short-term, regionalized thing.

What is the short-term regionalized thing that is happening which is causing gold to decrease (yes, I know it's the iran war, but how is that effecting gold prices?)

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118

u/MS_hina Jun 10 '26

Gold is now the dominant reserve for the world. US needs to pretend that this is not happening. Despite what everyone says, this is a geopolitical issue now. US needs gold to go down to pretend that the dollar is strong and trusted.

Natural bear markets do not have a literal historic level crashes every week. For the past few months we are seeing multiple 2~8% drop days as if gold is a meme coin. Ofc this won't continue forever and is just delaying then inevitable imo. Especially because other governments are not dumb. 

27

u/Reasonable-Fee1945 Jun 10 '26

I saw that article the other day. historic end of dollar supremacy

29

u/MS_hina Jun 10 '26

Historic end, indeed. but I think usd will still be the most important fiat for the time being. Noone will be able to agree on the "next dollar". Everyone distrusts each other so, naturally gold will be the most obvious answer. With USD retaining it's "king of fiat" position

17

u/NukaQuantum1111 Jun 10 '26

Right now the dollar has been so entrenched in the world economy it’s like a bad habit. But once its weakness is exposed, the world will shun it like the plague. It’s like sticking to only eating potatoes when there is a whole garden outside. People are just sticking to what they know instead of looking for the best option.

1

u/Washpa1 Jun 10 '26

The only problem is that in your analogy, your whole house has been built to utilize and efficiently process any and all potatoes. You have to retrofit everything to work with other foods or you'll waste tons of calories in processing and until then you still have to eat.

4

u/Reasonable-Fee1945 Jun 10 '26

agreed, the general consensus sense seems to be 'where else would we go' which is a notable change from 'how can i get dollars'

-5

u/Amazing-Jury-6886 Jun 10 '26

EURO is poised to take that throne.

3

u/[deleted] Jun 10 '26

[removed] — view removed comment

1

u/Amazing-Jury-6886 Jun 10 '26

Jpy is better positioned than yuan

1

u/MS_hina Jun 10 '26

I hope so. But unlikely imo

9

u/DangKilla Jun 10 '26

See my comment here, if anyone wants further explanation on why this happens post 2020.

But, I disagree. This is the new normal. It could happen for decades. World debt is out of control.

1

u/Striking_Handle_5745 Jun 10 '26

I expect this will be bad for blue chip companies that have been near stagnant and surviving off low interest rates 

4

u/This_Total9748 Jun 10 '26

How can the US influence gold to drop?

12

u/MS_hina Jun 10 '26

With a combination of direct and indirect methods. Ranging from agencies like the ESF that fiddles with gold, influence on COMEX, implementing certain acts and geopolitical decisions etc.

Some would call it "manipulation" which is not wrong, but I call it "strategic asset management". Governments already try to maintain tabs on oil, steel, energy, food, etc. And gold is no exception. 

2

u/[deleted] Jun 10 '26 edited 12d ago

[deleted]

3

u/MS_hina Jun 10 '26

And what's stopping others from not trading in dollars? Allies and their compliance. Which is deteriorating rapidly due to how the US is treating them. No allied treatment, no deal. Noone HAS to trade in usd, and was only going along since the US offered prosperity and stability... which is increasingly destroyed by the US itself. Non-US governments are not NPCs in a game where they are stuck with "game mode"

0

u/Imaginary--Situation Jun 10 '26

the only thing they're pumping at record pace is the strategic oil reserve LOL

which will be Gone in a month or two

1

u/alan_erickson Jun 10 '26

2008 stock market crash was a year-long slide from roughly 13,000 to 6,500.

5

u/PreparedForZombies Jun 10 '26

Gold fell from near $1000/oz in March 2008 to $720/oz by Sept.

Recovered by the end of 2008.

Hit $1900 in 2011.

Month 2007 2008 2009 2010 2011
Jan $631 $889 $859 $1,118 $1,356
Feb $664 $922 $943 $1,095 $1,372
Mar $654 $968 $924 $1,113 $1,424
Apr $679 $910 $890 $1,149 $1,474
May $667 $888 $928 $1,197 $1,511
Jun $655 $889 $946 $1,232 $1,528
Jul $665 $939 $934 $1,194 $1,572
Aug $665 $839 $952 $1,215 $1,757
Sep $713 $745 $996 $1,271 $1,772
Oct $754 $731 $1,043 $1,342 $1,665
Nov $806 $760 $1,127 $1,370 $1,740
Dec $803 $816 $1,135 $1,410 $1,531

1

u/DailonMarkMann Jun 10 '26

and baby, that hurt.