Markets June 10, 2026

Gold Erases 2026 Gains Despite China’s Biggest Purchase Since January 2025

Key Takeaways

Gold price today is near its lowest level of 2026 after falling more than 20% from its yearly high
China added over 10 tonnes of gold in May, extending its buying streak to 19 straight months and lifting reserves to a record 2,331 tonnes
Peter Schiff argues a prolonged Iran war would ultimately be bullish for gold because inflation could outpace interest rate increases

Gold’s price slipped below $4,200 this week. It erased all gains for 2026 despite continued buying from China’s central bank. Data released by the People’s Bank of China showed the country added more than 10 tonnes of gold in May. This marked its largest monthly purchase since January 2025. The decline has come even as geopolitical tensions in the Middle East remain elevated, leaving investors focused on a different set of market drivers.

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China Keeps Buying Gold, but Traders Are Looking Elsewhere

China’s central bank increased its gold holdings for a 19th consecutive month in May. It is taking total reserves to a record 2,331 tonnes. According to official data, the latest purchase exceeded 10 tonnes, making it the country’s largest monthly addition since January 2025.

The buying trend mirrors broader activity among central banks. The World Gold Council reported that official sector purchases remained a major source of gold demand in recent years as reserve managers continued to diversify holdings. Despite that support, the gold price today remains under pressure, with the metal falling more than $100 in recent sessions and returning to levels last seen earlier this year. At press time, gold was trading at a low of $4,153.47.

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Peter Schiff Says Markets May Be Misreading the Iran War

Peter Schiff argued this week that investors may be placing too much emphasis on short-term price moves. Commenting on gold’s decline, Schiff said a prolonged Iran war could prove more supportive for the metal than a quick resolution because of its potential impact on inflation and government spending.

Gold is down over $100, trading below $4,150. It's retesting its March 23 low of $4,098. That bottom was established the first time Trump claimed the Iran war would soon end, sending gold back above $4,800. But a long, drawn-out war is far more bullish for gold than a quick end.
— Peter Schiff (@PeterSchiff) June 10, 2026

At present, markets appear to be operating differently. While China’s reserve accumulation continues and geopolitical risks remain present, traders have mostly focused on interest-rate expectations and risk sentiment. The result has been a weaker gold market despite factors that have historically supported safe-haven assets.

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