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Gold drops 7.5% in H1 2026 after strong 2025, facing pressure from rising rates and dollar strength.

Market News
02 Jul 2026
Benzinga
View Source
Neutral
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Gold prices fell about 7.5% in the first half of 2026, marking their worst quarterly performance in 13 years after a strong 2025. The decline is driven by rising interest rates, a stronger U.S. dollar, and macroeconomic uncertainty linked to geopolitical tensions, particularly the U.S.-Iran conflict. Despite the recent drop, gold remains a favored hedge against geopolitical risk and inflation, with potential support from Asian investors and central banks. Future price direction depends on economic data, interest rate trends, and geopolitical developments, with analysts noting gold could rebound to $4,500 or even $5,000 per ounce if conditions improve.

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