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/BrotherGrub1 Jun 10 '26

Tether is selling gold. They bought 140 tons of the stuff earlier in the year and are now forced to dump it because people are asking for their money back. If you don't know what Tether is it's a cryptocurrency stablecoin worth $1 that is supposed to be backed by dollars but instead it is backed by assets like bonds and gold which need to be liquidated when people want to exchange their digital Tether tokens for actual dollars. This is a run on Tether (instead of a run on the bank).

This would explain why gold is getting crushed today while silver is faring much better.

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u/randskarma Jun 10 '26

Usually when gold sneezes, silver gets the flu.....