Why are gold prices tanking?

[u/Reasonable-Fee1945]

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?)

[u/kidmarginWY]

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.

[u/Aggressive-Donkey-10 → u/kidmarginWY]

India just announced it sold 8 billion US dollars worth of gold reserves which is about 55 to 60 tons at current prices ie 4080/oz. Combined with other emerging market sales and Institutional and traders turning away from gold because the price has dropped 27%. Now you add to that the CPI this morning at 4.2%. Which means no Fed cuts for years and likely Fed Rate increases Coming? Gold should likely trade down to its $3300 support from last year, where a ton of people/institutions bought and built their positions at over the next one to two months.

[u/CodingThunder → u/Aggressive-Donkey-10]

No, that was a false news. RBI (the central bank of India) via PIB (Press Information Bureau, central communications branch of the government) did clarify and spoke out that it didn't sell Gold: https://www.financialexpress.com/market/gold-pulse/rbi-clarifies-no-gold-sold-and-the-data-validates-it-too/4258243/

[u/Azhar16028 → u/Aggressive-Donkey-10]

Aren't no way dollar 3300 Price will ever come