Gold breaks through $4,000 level: sell-off amid geopolitical détente
Spot gold fell to $3,972 per ounce on June 24, 2026, settling below the psychologically important $4,000 level for the first time since November 2025. The decline represents a drop of about 29% from the all-time high of $5,608 reached in January of this year.
The key trigger for the collapse of the "war premium" in gold prices was Donald Trump's clarifications on Truth Social regarding the framework agreement between the United States and Iran. The president specified that during the 60-day negotiation window, passage through the Strait of Hormuz will be free, and the unfrozen Iranian funds will be used exclusively for the purchase of American agricultural products — corn, wheat, soybeans, and other goods. "If this information turns out to be false, negotiations will cease immediately!" he emphasized.
This statement effectively removed from the agenda the most acute scenario of a blockade of the key oil route, which in recent months had fueled inflation expectations and supported demand for safe-haven assets. The market instantly reacted with accelerated selling: gold opened the session around $4,113 and rapidly moved lower. Silver also failed to hold, falling below $60 per ounce, confirming the metal's heightened sensitivity to changes in risk appetite.
Peter Schiff's View: Correction as an Opportunity
Well-known gold investment advocate Peter Schiff called the current decline "an even better buying opportunity." He warns that market expectations for aggressive Fed rate hikes ignore persistent inflation. In his view, any politically motivated policy reversal will benefit precious metals more than stocks, given the current gap in expectations.
Strong U.S. economic indicators indeed support the dollar and real yields, which traditionally weigh on non-yielding assets. However, structural factors — in particular, continued gold purchases by central banks — maintain a bullish outlook in the long term.
Analytical conclusion: The break below $4,000 is not just a technical correction but a signal that the market has stopped pricing in the acute phase of the Iranian conflict. Short-term dynamics will depend on real progress in negotiations, but fundamental drivers — reserve de-dollarization and inflation risks — remain in place. Buy on the dip or wait for a deeper correction? It all comes down to the investment horizon.