Gold Failed as Hedge When Investors Needed It Most

Gold dropped below $4,100 per ounce in late June 2026 as a technology-led market selloff forced liquidation across risk assets. The metal underperformed during the exact event it was supposed to hedge—equity crashes. Speculators who accumulated gold above $4,000 as macro insurance watched it act like a risk asset instead. This disconnect typically resolves once forced selling exhausts itself, but the timing remains unpredictable.