Gold prices have been in a correction mode in Q2 of 2026 and have fallen nearly 10% since June. The XAU/USD index dipped to the $3,900+ level, but briefly managed to trade above $4,000+ on Thursday. The phenomenal rally for the precious metal has cooled this quarter as oil prices stabilize in the $67-$70 range. Even the US dollar’s DXY index finally climbed above 101 after remaining in the 98-96 range for a year.
All of these developments have caused gold prices to stagnate and head south for a steep correction. The quick money in gold is now a thing of the past, and the index is moving according to the market’s dictation. However, Brad Dunkley, the Chief Investment Officer at Waratah Capital Advisors told Kitco News that the precious metal trading below $4,000 is a perfect accumulation zone and the best buying opportunity for long-term growth.
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The Feds Will Be Responsible For Gold Prices To Rise
Dunkley stressed that the US national debt is so high that the Federal Reserve will not hike interest rates. Dunkley said that the Fed will instead print more money and push it across the US and the global economy. The abundance of currency will eventually harm the economy, leading to higher gold prices in the coming months. “The debt’s too high, so they can’t let interest rates go up,” Dunkley said. “They’re just going to run it hot. They’re going to print money.”
He argued that structural monetary debasement is happening in real time and will be the dominant factor for gold prices to rise. “No recessions are allowed to happen. Unemployment’s not allowed to happen. Bad things happen? We’ll just send you money. Go spend it, everybody,” he said. He added, “Investors are only really going to care about this sector when it’s the only thing going up,” he summed it up.