Gold dips below $4,000, pressuring jewelry demand and pricing

Gold fell below $4,000 an ounce on June 24, a new low for 2026 and the first sustained move under that level since November 2025. The slide came after January’s all-time high of $5,595 per troy ounce and pushed at least one firm to lower its second-half forecast.

For jewelry, the metal had already begun to squeeze volume. World Gold Council data show first-quarter 2026 demand rose modestly to 1,231 tonnes, but the value of that demand jumped to a record $193 billion, while jewelry demand volumes remained under pressure amid record prices. In 2025, total gold demand, including OTC, topped 5,000 tonnes for the first time, and the price set 53 new all-time highs.

The lower spot price helps the cost of new pieces, especially where gold weight drives the bill, but shoppers should not expect an immediate reset at the showcase. Retailers are still carrying higher-cost inventory bought when gold was nearer its peaks, and labor, stone-setting, casting and finishing costs do not move down in lockstep with bullion. A custom ring or a repair ticket for resizing, rebuilding a worn head or replacing lost gold parts will feel the benefit only gradually as old stock clears and new metal is ordered at lower levels.

Metals Focus expects physical investment to replace jewelry as the largest component of gold demand for the first time in 2026, alongside double-digit losses in jewelry demand, even as it still forecasts a record annual average price. A firmer U.S. dollar and expectations that interest rates will stay elevated weighed on June’s selloff, and Macquarie still sees a 2026 average spot price of $4,641 an ounce.