Back to today’s briefing

Story perspectives

Gold Drops 16% to $4,694; Banks Buying

5/13/2026

29 4 Full Breakdown

Summary

Story summary

Investors saw gold fall 16% to $4,694 per ounce, a correction in a bull market.
Inflation rose to 3.8% in April 2026, the highest since May 2023, while central banks net-bought 244 tonnes of gold in Q1 2026 and demand reached 1,231 tonnes ($193 billion).
Analysts note that J.P. Morgan projects a Q4 2026 average of $5,055 per ounce, TD Securities forecasts a 2026 average of $4,831, and recommends $500 dollar-cost averaging.

History

Historical Context

In August 1971 President Richard Nixon closed the dollar’s gold convertibility, ending the Bretton Woods system that had fixed gold at $35 per ounce since 1944. The shock triggered a bull market that lifted gold to $850 per ounce by January 1980. In April 2026 gold fell 16% to $4,694 per ounce while the Federal Reserve and European Central Bank bought a net 244 tonnes, showing policy’s impact on prices.

1 of 2

Story summary

Investors saw gold fall 16% to $4,694 per ounce, a correction in a bull market.
Inflation rose to 3.8% in April 2026, the highest since May 2023, while central banks net-bought 244 tonnes of gold in Q1 2026 and demand reached 1,231 tonnes ($193 billion).
Analysts note that J.P. Morgan projects a Q4 2026 average of $5,055 per ounce, TD Securities forecasts a 2026 average of $4,831, and recommends $500 dollar-cost averaging.

1 / 2