Gold holds at $4,000 after worst quarter in 13 years

Gold is trading around $4,000 per ounce in late June 2026, after what’s shaping up to be the metal’s weakest quarterly performance in over a decade. The retreat from January’s all-time high of $5,598.75 has been swift and brutal.

The 11% drop over the past three months, with individual weeks in early June seeing losses of 4-5%, marks one of the steepest sell-offs since 2013. Bears and bulls are now locked in a standoff right at the $4,000 line.

How gold went from record highs to a correction

Gold hit $5,598.75 per ounce in January 2026, propelled by years of inflationary pressure, geopolitical crises, and aggressive central bank buying. The correction that followed was driven by a resurgent US dollar, the Federal Reserve signaling further interest rate increases, and a gradual easing of geopolitical tensions that had been fueling safe-haven demand.

June accelerated the damage. Daily drops of 1-3% became routine. Gold breached its 200-day moving average and touched lows in the $3,980 to $4,022 range. ETF outflows added fuel to the decline as investors rotated capital into higher-yielding assets.

The $4,000 battle line

Analyst Ed Yardeni has identified $4,000 as the next major support level for the metal, while maintaining a longer-term bullish perspective. Gold sitting at $4,000 after peaking near $5,598.75 represents a roughly 28% drawdown from the highs. The metal has given back its most speculative gains while still trading at historically elevated levels.

What this means for investors

The broader dynamic at play is a classic asset allocation rotation. Rising US bond yields make fixed income more attractive relative to a non-yielding asset like gold. Significant ETF outflows confirm that institutional money is actively making this trade, moving from precious metals into instruments that now offer meaningful real returns.

A slowdown in central bank buying, after what had been a prolonged period of aggressive accumulation, removes one of the most powerful demand drivers gold enjoyed over the past several years.

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