Overview
- Global spot gold tumbled roughly 2% on June 18–19, 2026, sending prices into the low‑to‑mid $4,200s per ounce after a selloff triggered by the Fed’s policy meeting.
- The selloff followed new Fed Chair Kevin Warsh’s hawkish tone that lifted the dollar and U.S. yields, which makes non‑yielding assets like gold more costly to hold.
- Diplomatic moves first supported bullion early in the week when the U.S. and Iran reached an interim understanding but those gains faded after follow‑up talks in Geneva were postponed, reintroducing uncertainty about oil and inflation.
- Domestic markets reflected the global drop unevenly: India logged a modest third straight session fall (about Rs 960 per 10g in New Delhi) while Pakistan saw a steep one‑day correction (around Rs14,900 per tola on June 19).
- Market structure is mixed with ETF outflows and light speculative positions offset by ongoing central‑bank purchases and steady physical demand, and major banks diverge on outlooks with Goldman Sachs cutting its year‑end target to $4,900 and JP Morgan forecasting much higher prices over coming quarters.