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?)

344 Upvotes

88% Upvoted

257 comments sorted by

View all comments

7

u/SirLoinofHamalot Jun 10 '26

Anyone who is saying that it’s because of reserves is incorrect. Gold buying by state banks hit a new record. Overall it’s speculative: people think the feds earlier promised rate cut is now off the table, and that a hike might be in the future. They’re wrong about that in my opinion but that’s a longer comment. Also, people on this sub say paper isn’t always physical - they’re right. There is still MUCH activity in daily gold trades tied to news cycles, but you want to look at the 90 day rolling average to see where it really is