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Gold's price flashed a death cross at the end of its worst quarter in 13 years. Here's why.

Business Insider Published Jul 1, 2026 Reviewed Jul 3, 2026 ✓ Reviewed by citations.press editors
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Gold is now trading just above $4,000 an ounce, a 27% decline from its all-time high just above $5,600 in January.
4000 $ · Gold price27 % · Gold price change
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Gold dropped 16% in the second quarter, its worst quarterly performance since 2013.
16 % · Gold price change
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Volatility at quarter‑end was the highest since the Great Financial Crisis, according to the CBOE Gold Volatility Index.
CBOE Gold Volatility Index, source
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Jeff deGraaf said the death cross validates the idea that gold was in a bubble at the end of 2025 and the trade is unwinding.
Jeff deGraaf, Chairman of Renaissance Macro Research
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The World Gold Council said gold is currently down 7% year‑to‑date.
7 % · Gold price change
World Gold Council, author of mid‑year outlook
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The Dollar Index traded around 101 on Wednesday, up about 3% year‑to‑date.
101 · Dollar Index3 % · Dollar Index change
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RenMac's deGraaf said the second quarter was gold's worst in over a decade as hawkish Warsh firms the dollar.
RenMac's deGraaf, author
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Slowing momentum accounted for about a 4% drop in gold's monthly price return in June.
4 % · Gold monthly price return
World Gold Council, analysis author
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Gold ETFs recorded around $3 billion of net outflows over the second quarter.
3000000000 $ · Gold ETF net outflows
VettaFi, financial firm
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The World Gold Council said gold could fall to $3,500 an ounce by year‑end, implying up to 13% further downside.
3500 $ · Gold price target13 % · Gold price decline
World Gold Council, forecast
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Jeffrey Christian said he wouldn't be surprised to see gold fall to $3,800, implying a 6% drop.
3800 $ · Gold price target6 % · Gold price decline
Jeffrey Christian, commodities analyst
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Goldman Sachs cut its year‑end price target for gold by $500 to $4,900 an ounce.
500 $ · Gold price target change4900 $ · Gold price target
Goldman Sachs, financial institution
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Bank of America said reaching $6,000 an ounce looks unlikely for now.
6000 $ · Gold price target
Bank of America, financial institution
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UBS said gold is on track for a 28% rally over the next year.
28 % · Gold price rally
UBS, financial institution
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The days of gold's raucous bull rally feel like a distant memory in 2026.

Gold, one of the hottest assets of 2025, has been stuck in a tailspin for most of this year as investors dump the precious metal, reversing a meme-like rally that took bullion to records last year.

Gold is now trading just above $4,000 an ounce, a 27% decline from its all-time high just above $5,600 in January. It dropped 16% in the second quarter for its worst quarterly performance since 2013. Volatility at quarter-end was the highest volatility since the Great Financial Crisis, according to the CBOE Gold Volatility Index.

The metal also flashed a dreaded death cross, a bearish technical signal that's triggered when the 50-day moving average of an asset falls below its 200-day moving average. The signal often precedes further declines in the price of an asset.

The death cross validates the idea that gold was in a bubble at the end of 2025, with the trade now unwinding, according to Jeff deGraaf, a veteran analyst and the Chairman of Renaissance Macro Research.

"Gold is currently down 7% y-t-d, but this modest drop masks a dramatic rollercoaster ride," the World Gold Council wrote in its mid-year outlook for the metal.

Here are the factors that have weighed on the price of gold in 2026.

Take a smarter break in your day - and see how far you get.

Gold's rally last year was largely fueled by the idea that interest rates would fall as the Fed loosened monetary policy. Lower rates makes investments like cash and US Treasurys less attractive to investors, while increasing gold's appeal as a safe-haven as lower rates fuel inflation concerns.

But the new Fed boss has proven more hawkish than expected, and the central bank is largely expected to keep rates unchanged or even raise them. At the Fed's last policy meeting, Warsh reiterated the commitment to bringing inflation back down to its 2% target.

The US dollar has strengthened in value. The Dollar Index traded around 101 on Wednesday, up around 3% year to date.

"The 2nd quarter was its worst in over a decade as a hawkish Warsh firms the dollar," RenMac's deGraaf wrote of gold's trajectory this year.

"Convergence of global interest rates to higher levels would also raise the opportunity costs of gold in different regions, creating further headwinds," the World Gold Council said.

Another factor behind gold's rally last year was speculative interest from traders riding the upward momentum. That interest was unsustainable, though, and the parabolic moves haven't come close to being replicated in 2026..

Slowing momentum accounted for around a 4% drop in gold's monthly price return in June, according to an analysis from the World Gold Council.

Gold ETFs recorded around $3 billion of net outflows over the second quarter, according to data from the financial firm VettaFi.

Many forecasters have slashed their bullish outlooks for bullion.

The World Gold Council said it believes gold will most likely remain range-bound, but sees the potential for the metal to fall as low as $3,500 an ounce by the end of the year if it continues to see a "price consolidation," implying as much as 13% further downside.

Jeffrey Christian, a longtime commodities analyst, said in a recent note he wouldn't be surprised to see gold fall to $3,800 as its price consolidates over the summer, implying a 6% drop.

Goldman Sachs recently cut its year-end price target for gold by $500 to $4,900 an ounce, pointing to changing interest rate expectations in markets.

Bank of America, which previously said it was eyeing gold to rise as high as $6,000 an ounce, said in a recent note reaching that level "looks unlikely for now."

UBS, an outlier, said it saw gold on track for a 28% rally over the next year.

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