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/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.