Analysis-Gold's record rally falters as bulls run into Fed rate expectations, stronger dollar
Key takeaways
- Analysis-Gold's record rally falters as bulls run into Fed rate expectations, stronger dollar Gold jewellery sits on display at a jewellery mall in Shanghai, China January 27, 2026.
- Gold s reversal has raised questions over the longevity of its record-breaking rally even as geopolitical risk, fiscal deficits and central bank buying continue to support the longer-term case for bullion.
- After hitting a record $5,595 in January, spot gold has fallen 25%, as the Iran war spurred an oil-price rally and boosted bets on rate hikes.
Analysis-Gold's record rally falters as bulls run into Fed rate expectations, stronger dollar Gold jewellery sits on display at a jewellery mall in Shanghai, China January 27, 2026. REUTERS/Nicoco Chan · Reuters By Polina Devitt Fri, June 12, 2026 at 10:36 PM GMT+7 3 min read GC=F By Polina Devitt
LONDON, June 12 (Reuters) - Expectations for U.S. monetary tightening and a strong dollar have taken some wind out of the "perfect storm" powering an upswing in gold since 2023, leaving prices in vulnerable territory around $4,000 per ounce as the interest rate backdrop unfolds.
Gold s reversal has raised questions over the longevity of its record-breaking rally even as geopolitical risk, fiscal deficits and central bank buying continue to support the longer-term case for bullion.