Gold price falls – is now the time to invest in gold?

The gold price has fallen sharply from its record level in March. Here, we go through why the price has declined and what savers should keep in mind.

After a strong start to the year, the gold price has turned downward. On 8 June, the gold price was around SEK 1,301 per gram, which means that almost the entire price increase for the year has been erased.

Today, on 10 June 2026, the gold price has been down to around SEK 1,270 per gram. This can be compared with 1 March 2026, when the gold price reached a new all-time high of SEK 1,564 per gram.

This means that the gold price in Swedish kronor has fallen by almost 19 percent from the record level in March.

For many, this raises a natural question: has gold become more interesting again, or could the price continue to fall?

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Why did the gold price fall?

The recent decline is largely due to strong US jobs data. When the US labour market shows strength, expectations increase that the US central bank, the Federal Reserve, may keep interest rates high for longer – or even raise interest rates.

This usually puts pressure on the gold price.

The reason is simple: gold does not generate interest. When interest rates rise, interest-bearing assets become more attractive by comparison, which often causes some investors to reduce their exposure to gold.

Reuters reported on 10 June that the gold price fell to its lowest level in around 11 weeks in USD. At the same time, oil prices rose after increased concerns in the Middle East, which strengthened inflation concerns and increased expectations that interest rates may need to remain high for longer.

The market is now paying particular attention to US inflation figures, bond yields and the development of the dollar. All of these factors can affect the gold price in the short term.

From record level to clear decline

It is not unusual for gold to fall after a sharp rise. During periods when the price has increased quickly, the market can react strongly to news that changes the outlook for interest rates, inflation or the strength of the dollar.

In this case, several factors coincide:

• a stronger US labour market
• higher interest rate expectations
• rising bond yields
• a stronger dollar
• profit-taking after previous price increases

This does not mean that gold’s long-term role has disappeared. But it does show that even gold can move quickly in the short term.

Is now a good time to buy gold?

It is never possible to predict the exact bottom. The gold price may continue to fluctuate sharply in the short term, especially if uncertainty around central banks’ next moves remains.

At the same time, there are several strong factors that make gold interesting for long-term savers right now. Experienced investors rarely buy gold to time the exact bottom or top, but rather to spread risk over time.

After a price decline, buying physical gold also means that you receive more gold for every krona invested compared with when the price was higher. The important thing is not to act in panic, but to base any gold purchase on your own finances, time horizon and savings strategy.

What still speaks in favour of gold?

Despite the recent decline, there are several factors that continue to support gold’s role.

The World Gold Council shows that global demand for gold during the first quarter of 2026 reached a new record value. Total demand, including OTC trading, rose to 1,231 tonnes and the value of the quarter’s demand increased by 74 percent to USD 193 billion. Demand for gold bars and gold coins also increased by 42 percent to 474 tonnes, which was the second-highest quarterly level ever recorded.

Central banks also continue to play an important role. During the first quarter of 2026, central banks and other official institutions bought 244 tonnes of gold, which was an increase compared with the previous quarter. Poland and Uzbekistan were among the largest buyers during the period.

This shows that interest in gold does not only come from private investors. Central banks also continue to see gold as an important part of their reserves.

What speaks against gold in the short term?

In the short term, there are also risks.

If interest rates in the US continue to rise, this could put further pressure on the gold price. A stronger dollar can also make gold more expensive for buyers in other currencies, which may affect demand.

In addition, high gold prices can dampen demand in certain parts of the market, especially in jewellery. The World Gold Council highlights that strong investor interest is expected to offset weaker jewellery demand, but this also shows that demand changes depending on price levels and market conditions.

In other words: gold still has strong long-term drivers, but the price can absolutely continue to be volatile.

Gold as a long-term part of savings

For private individuals, gold is often about more than trying to time the market exactly.

Many people who invest in physical gold do so as a complement to other assets, such as shares, funds, savings accounts or property. Gold can serve a different function than more traditional investments, as it is a physical asset that has historically been used to preserve value over time.

Gold is often used to:

• spread risk in savings
• protect purchasing power over time
• balance a portfolio during uncertain periods
• own a physical asset with global demand

This does not mean that gold always rises in price. But it explains why gold continues to be relevant even after periods of price decline.

Should you wait or buy after the decline?

There is no simple answer.

Someone who buys gold after a larger decline may see it as a more attractive price than at the record level in March. At the same time, there is no guarantee that the price will not fall further.

That is why it is important to think long term and base the decision on your own finances, time horizon and risk level.

Buying gold should not be about panic or fast-moving headlines. Rather, it should be about what role gold can play in your overall savings.

The gold price in 2026, what happens now?

After the record level in March and the sharp price decline in early June, the gold market has become especially interesting to follow.

In the short term, the focus is likely to be on US inflation figures, interest rates, the dollar and developments in the bond market. Oil prices and geopolitical developments may also continue to affect the market.

In the longer term, central bank purchases, geopolitical uncertainty and demand for physical gold are the key factors that continue to matter.

So it is not certain that the decline is over. But it is also not certain that gold’s long-term importance has decreased.

Do you want to follow the gold price in Swedish kronor per gram, compare different gold bars or buy investment gold? At Tavex, you can follow current prices directly online.

You are warmly welcome to visit Tavex in one of our stores in Stockholm, Gothenburg or Malmö. You can also buy investment gold directly online at tavex.se.