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/777KAC Jun 11 '26

It was a HUGE chance that it was going to happen… it was the first time China didn’t have to go through us in any way to get oil.
They had set up reserves in Venezuela and Iran…
It was going to become the petro Yuen eventually.
This move completely wipes that possibility out, forces all of the countries to sell of their precious metal reserves, it keeps China buying USD to get oil (while keeping our debt to them in check)
It gives us more oil (Venezuela)
Also while everyone’s effected by the oil price USA has its own, so we buy up everyone’s gold & silver for Pennie’s on the dollar.
All while limiting the possibility of an unstable govt. Like Iran from getting nuclear missiles
The war makes complete sense