What happened in June 2026?
Precious metals markets pulled back sharply throughout June, with gold falling 12% to USD $4,008 per troy ounce (oz) by month end. Silver saw a more pronounced pullback, declining 22% to USD $58oz.
The price falls in June are part of the broader pullback in precious metals that began following the January super spike, driven by an unwind of speculative positioning, plus macro headwinds. Rising yields, a stronger U.S. dollar (DXY) and the increased likelihood of a rate rise in the U.S. by September continued to weigh on both metals last month.
While gold prices remain well supported near the USD $4,000oz mark, the recent escalation of tensions in the Middle East around the Strait of Hormuz has the potential to further intensity global inflation concerns. Should this occur, expectations for interest rates could shift higher, placing downward pressure on gold prices over the short-term.
The long-term outlook remains positive, with central banks remaining a key pillar of demand. A recent survey conducted by the World Gold Council suggested elevated central bank gold acquisitions will continue, with 45% of participants expecting to increase their own gold reserves over the next 12 months.
Technical indicators suggest both precious metals have now experienced a textbook correction that mirrors other pullbacks seen within the secular bull market, with history suggesting these pullbacks have been extremely rewarding entry points for those looking to add gold and silver to their portfolio.
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