Is gold still worth buying after falling 25% from its January peak?

What does this mean for UK investors?

In GBP terms, gold is currently trading at approximately £3,150/oz, with GBP/USD near 1.34 (London Gold Exchange, 20 June 2026). If major bank forecasts of $5,200–$6,000 prove correct by year-end, that would translate to roughly £3,880–£4,470/oz for UK-based investors, assuming sterling remains broadly stable.

Gold has given back a significant portion of its gains. Whether the correction is a buying opportunity or the beginning of a deeper pullback depends on the factors below:

• Watch the Fed: a dovish pivot or pause in rate hikes would remove the primary headwind for gold. The next FOMC meeting is the key near-term catalyst
• Watch the dollar: a weakening dollar would directly support gold prices for international buyers
• Watch ETF flows: a return to net inflows from institutional investors would signal renewed conviction
• Pound-cost averaging: most analysts, including Wells Fargo, advise against trying to time a volatile commodity market. Regular purchases regardless of price smooth the entry point (London Gold Exchange, June 2026)

This is not personalised financial advice. Your own risk appetite and investment goals should determine how you respond to a gold price correction. If in doubt, seek independent advice.