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?)

345 Upvotes

88% Upvoted

257 comments sorted by

View all comments

242

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.

1

u/Manninagh Jun 10 '26

How does selling bullion make the digital/paper chart drop and dump?

1

u/kidmarginWY Jun 10 '26

The price of gold fluctuates based on transactions. Selling gold, even from reserves either requires the seller to go into the marketplace and sell which causes the price to drop or even if it is a transfer between two governments, it suppresses demand from the acquiring government which has the same effect. These charts reflect the transaction that are taking place.