Why is gold going down?

What's been moving gold lately

As of October 22, 2026

Gold has been falling. It settled at $4,150 an ounce in New York futures trading on October 21, about 5% lower than a month earlier and 22% below its 2026 high settlement of $5,318 on January 29, the day it touched nearly $5,600 in spot trading. It fell about 1.3% more on October 22.

Gold went into 2026 after rising more than 64% in 2025. In January it set records as the dollar weakened, as investors worried about the Federal Reserve's independence after the Justice Department served the Fed with subpoenas, and as President Trump threatened tariffs on European allies over Greenland. Markets were also expecting rate cuts.

It turned on January 30, when President Trump nominated Kevin Warsh to lead the Fed: gold fell 8.5% that day as the dollar rose. The U.S.-Iran war that began on February 28 didn't lift it the way a crisis often does. Higher oil prices meant higher inflation and higher interest rates, and gold pays no interest. By late June it was near $4,000.

On September 16 the Fed raised rates for the first time since 2023, to 3.75% to 4.00%, saying inflation "remains elevated." Since then attacks on shipping in the Strait of Hormuz have pushed oil higher, and traders put the odds of another rate hike in December at about 86%, according to Kitco. Buyers haven't left: the World Gold Council reported a record $31 billion of inflows into gold funds in the third quarter. So far that buying hasn't outweighed higher rates.

What makes gold go down

• Higher interest rates. When rates rise, or the Federal Reserve signals it will hold them high, cash and bonds pay more, and gold, which pays nothing, loses buyers.
• A stronger dollar. A rising dollar makes gold more expensive in other currencies, which cuts demand and tends to pull the dollar price down.
• Calm. When fear eases and stocks rally, the money that ran to gold for safety moves back out.
• Selling after a big run. After a record, holders sell to take profits. Falls can feed on themselves when traders who borrowed to buy are forced to sell.
• Funds and central banks slowing. Outflows from gold funds, or central banks buying less, remove the demand that pushed the price up.
• High prices cut jewelry buying. India and China are the biggest jewelry markets, and buyers there buy less when prices are high.

The same forces work in reverse: see why gold goes up.

What it means if you're selling

We buy metal; we don't forecast prices, and nothing here is investment advice. What we can tell you is how the price reaches your payout. We pay 94% of the gold value for scrap and karat gold and 96% for bullion and coins. Scrap is priced at the Kitco bid when melting and assay begin, and coins and bullion at the Kitco bid when we verify your package, so a move in the price before then moves your payout with it. Our bids page shows today's numbers live.

Sources for the recent moves

• Federal Reserve statement, September 16, 2026.
• Bloomberg Law, Powell says Justice Department served Fed with subpoenas, January 12, 2026.
• Reuters via Kitco, gold and silver hit record highs as Greenland dispute spurs safe-haven buying, January 19, 2026.
• The National, gold plummets and dollar strengthens on Trump's Fed chair nomination, January 30, 2026.
• ABC News, gold prices plunging amid the Iran war, March 2026.
• World Gold Council, gold ETF holdings and flows, October 2026.
• Kitco News, gold and silver pressured as Hormuz attacks send crude higher, October 22, 2026.

Prices above are New York futures settlement prices; the live price at the top of this page is the Kitco bid.

Metal prices: Why is gold going up? · Why is silver going up? · Why is silver going down? · Why is platinum going up? · Why is platinum going down? · Why is palladium going up? · Why is palladium going down? · Gold price history · Silver price history · Gold-to-silver ratio · What is the spot price? · All guides

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