Gold Prices Plummet 26% Amid Monetary Tightening Fears

International gold prices have plummeted 26% from their peak of $5,597.23 on January 29, 2026, to around $4,057 as of July 23.

The decline is attributed to the 'Kevin Warsh Shock' and rising oil prices following the Middle East conflict, which heightened wariness around monetary tightening and amplified inflation concerns.

Hwang Byung-jin, head of FICC Research at NH Investment & Securities, believes gold has already fallen as much as it's going to fall and is positioning for a second-half rebound if the U.S. pauses rate hikes.

If oil prices rise above $100, inflation could spike dramatically, but Hwang forecasts a rate-hike freeze through year-end, making a $6,000 target possible next year.