Gold prices have declined 28% from January 2026's record high of $5,595 per ounce, trading around $4,038 as of July 13, 2026.

The Federal Reserve's hawkish stance, responding to rising inflation, has led to higher real yields, increasing the opportunity cost of holding non-yielding assets like gold.

Geopolitical tensions, notably the U.S.-Iran conflict, have escalated oil prices, contributing to higher inflation and reinforcing the Fed's rate-hike expectations.