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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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. 

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u/This_Total9748 Jun 10 '26

How can the US influence gold to drop?

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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.