Gold Prices Plummet as Yields Rewrite the Playbook
Gold prices plummeted to $4,120.49 an ounce after a 3.9% drop, leaving it 26% below its 52-week peak of $5,598.58. The sharp decline has analysts rethinking their near-term targets, despite holding firm on the longer arc.
The culprit behind gold's downfall is the US rates complex, with ten-year Treasury yields punching through 5.2%. This move has sapped demand for non-yielding assets, making it harder for gold to compete.
Central banks remain a steady force in the market, however, buying 288.9 tonnes of gold in the second quarter of 2026, a 62% jump from the previous year. Poland led the purchases with 51 tonnes, followed by China at 33 tonnes.
The $4,000 round number is being closely watched, as central banks and long-term investors are expected to step in if prices hold above it. A sustained break below this threshold would darken the technical picture and open the door to further downside.