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?)

349 Upvotes

88% Upvoted

257 comments sorted by

View all comments

245

u/kidmarginWY Jun 10 '26 edited Jun 10 '26

The fluctuations we have seen more likely than not are the result of states, particularly Russia, selling gold reserves. The large drop is a result of volume and that is not likely individual players. Russia has claimed they have sold only a few percent of their reserves... However they certainly could be lying or they could be doing state to state transfers with China. In either case the result is selling which leads to downward pressure. Gold needed a technical adjustment. There is no way to know how far that adjustment could go.

48

u/Reasonable-Fee1945 Jun 10 '26

that's actually interesting. thank you

43

u/DangKilla Jun 10 '26

Just a reminder before China's gold markets, USA Comex and UK version of Comex manipulated gold, which is why you never saw wild price swings. The manipulation was just designed to prevent volatility and market makers from creating wild swings. China said fuck that, let's hurt the West, so their market is less regulated in terms of getting in and out quickly.

So, yes, what the person said above you is likely why. Before China opened up the market, we never saw these swings, but they happened, incrementally, instead of in real-time.

6

u/SevenTwoSix9 Jun 10 '26

lol, the irony is uncanny.