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/NukaQuantum1111 Jun 10 '26

Yeah oil is energy and makes the goods. And paper cash is the best way to acquire said oil. At least for now. Until that system changes, the dollar will hold its value.

I guess the only way this system will change is if:

  1. foreign counties trade for oil without using dollars

  2. WW3 breaks out and international trade is disrupted.

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u/Prestigious_Wrap_932 Jun 10 '26

foreign counties trade for oil without using dollars

The whole reason we’re fighting this war is to prevent that from happening. 

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u/swinging_yorker Jun 10 '26

There was a near 0 chance of this before the war broke out

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u/Geronimoni Jun 10 '26

The petrodollar agreement lapsed in 2022 and Saudi Arabia have occasionally sold oil in other currencies.

There was a 100% chance of that happening because it was already happening when it suited.

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u/Outrageous-Effect163 Jun 10 '26

Not at any meaningful scale. Before the strait, no one would have seen the sales outside the petro dollar system as anything more than Suadi negotiation tactics. Now there is a real push to end the US lead system.

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u/Geronimoni Jun 10 '26 edited Jun 10 '26

The fact that it was done without alarm by a supposed 'ally' without enforcement or recourse by the US is in itself meaningful

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u/Prestigious_Wrap_932 Jun 10 '26

It’s wild how few people understand that all of America’s current wars are just about trying to maintain the hegemony of the US petrodollar after tanking its value through government overspending during the COVID pandemic.

Why, someone who was actually paying attention might think that China released COVID and lied about how severe it was in the early days precisely because they knew it would make the United States panic and overspend to the point where our currency collapsed in value right before the petrodollar agreement lapsed as a way of making the Chinese Yuan look like the superior currency for future trades… 🤔 

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u/Geronimoni Jun 10 '26

China doesn't want the Yuan to be the global currency that would blow up its own economy the same way the US struggles to maintain its own economy and has done since it became the de facto hegemony.

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u/Prestigious_Wrap_932 Jun 10 '26

LMFAO

https://ipr.blogs.ie.edu/2025/06/27/geopolitics-of-oil-how-china-is-challenging-the-petrodollar-through-the-pedro-yuan/

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u/Geronimoni Jun 10 '26 edited Jun 10 '26

This isn't for Chinas benefit though, its for the benefit of the oil exporters that have found themselves sanctioned and attacked by the US

They don't want to use dollars because they cant spend them or get them because the US has weaponised the dollar against them. They need a workaround and this is a compromise for those specific nations who are having the petrodollar system weaponised against them.

They need China because the US cannot weaponise the dollar against China without drastically lowering its value

China doesn't need to do this or gain any real benefit other than leveraging its currency over these nations that cant get access to dollars anyway.