Gold prices decline by nearly 30% since January 2026

Between January and June 2026, the price of gold dropped by approximately 30%, falling below $4,000 per ounce by late June. This marks a sharp reversal from the peak of $5,594 reached in January 2026, which followed a period of growth starting from $2,000 in February 2024. While gold is historically considered a safe-haven asset during times of uncertainty, such as the Israel-Hamas conflict and the U.S. trade wars, it has recently decoupled from this trend. Analysts attribute the decline to rising inflation driven by an energy crisis, leading to expectations of higher interest rates from the U.S. Federal Reserve and other central banks. The European Central Bank has already increased its deposit rate from 2% to 2.25% as of June 2026. Additional factors contributing to the decline include a rally in technology and artificial intelligence stocks, as well as profit-taking by individual investors who purchased gold at lower price points.