Gold Price Plummets 30% from Record High before Recovering

The year 2026 was marked by significant fluctuations in the gold price. After reaching an all-time high of $5,595 an ounce on January 29th, gold prices plummeted to a low of $3,974.51 on June 24th, a decline of nearly 30% from the peak.

The Iran-US conflict in February initially boosted gold prices by 5.2%, but this trend reversed in March as oil prices surged and inflation expectations rose, causing real yields to strengthen the US dollar. By April, both CPI and PPI had exceeded the Federal Reserve's target of 2% annual inflation, further pressuring gold prices.

The decline continued into May, with core CPI decelerating but gold still falling. It wasn't until July that gold prices began to recover, posting a gain of 0.5% for the month after softer US inflation data and the Fed's decision to hold rates steady.