Gold just lost its grip on the $4,000 level. Spot prices slipped below that psychologically important threshold on June 24 for the first time since November 2025, pushed down by a US dollar flexing at 13-month highs and a Federal Reserve that clearly isn’t done tightening.
The decline amounts to more than 3% since the Fed’s most recent policy meeting. Gold started the week trading around $4,090 to $4,121 before the selloff accelerated.
What’s driving the drop
Two forces are squeezing gold right now, and they’re working in tandem.
First, the dollar. The US dollar index surged to levels not seen in over a year, making gold more expensive for holders of other currencies.
