Spot Gold Plunges $532 in June to $4,008 as Hawkish Fed and U.S.-Iran Deal Lift Dollar
Updated
Updated · Kitco NEWS · Jul 13
Spot Gold Plunges $532 in June to $4,008 as Hawkish Fed and U.S.-Iran Deal Lift Dollar
3 articles · Updated · Kitco NEWS · Jul 13
Summary
$532.24 per ounce vanished from spot gold in June, a nearly 12% drop that left it at $4,008 and marked a fourth straight monthly loss.
The selloff began after the U.S.-Iran Islamabad memorandum sent oil lower and the dollar higher, then deepened when markets read new Fed Chair Kevin Warsh's June remarks as hawkish.
Funds had already been unwinding leveraged gold positions, and June's waterfall decline was driven largely by CTAs, quant and algo traders as sovereign-related buying also pulled back.
Gold fell below its 200-day moving average for the first time since October 2023, with a 26% drawdown that Sprott said pushed sentiment to extreme bearish and oversold levels.
Sprott argues the short-term hit from a stronger dollar may still reinforce gold's longer-term role as reserve diversification accelerates; gold's share of world reserves recently reached about 34% before ending the quarter at 27%.
Central bank gold now outweighs their US Treasuries. Is the dollar's era as the top reserve asset officially over?
Why does every surge in the U.S. dollar's strength seemingly hasten the global financial system's pivot away from it?
The June 2026 Gold Crash: Causes, Global Reactions, and the Road Ahead
Overview
Gold enjoyed a strong run from August 2020, driven by inflation and economic uncertainty, reaching a peak of $5,597.23 per ounce in January 2026. However, June 2026 marked a dramatic turning point as gold prices began a sharp and sustained decline. This downturn became clear by mid-June, with gold dropping from $4,540.15 per ounce and continuing to fall into July. The report highlights how this shift was triggered by changing economic conditions, including persistent inflation and monetary policy changes, leading investors to closely watch upcoming economic data for clues about gold’s future direction.