Shares of abrdn Physical Gold Shares ETF slid to $39.24 on June 10, erasing gains from the past week, after this morning's Consumer Price Index report showed inflation running hotter than gold bulls hoped. The May CPI rose 0.5% month-over-month and 4.2% year-over-year , with energy costs up 3.9% in May alone, accounting for over 60% of the monthly increase . For SGOL — a $7.6 billion fund that holds nothing but physical gold bars in vaults — the ETF tracks only responsibly sourced London Good Delivery bullion and charges a 0.17% expense ratio , meaning the metal's price is the fund's price, with no management cushion.
• Yields and a Stronger Dollar Are Squeezing Gold From Both Sides. Oil above $90 and Treasury yields near 4.5% are keeping the gold selloff tied to inflation risk . Higher yields make bonds more attractive than gold, which pays no income. After last week's blowout jobs report, bond traders have fully priced in a quarter-point Fed rate hike by December , a dramatic swing from earlier 2026 expectations of cuts. Every tick higher in real yields is a tick lower for gold — and for SGOL's net asset value.
• Gold Has Lost More Than 11% in a Month, and Technical Damage Is Mounting. Spot gold traded as low as $4,174 on June 10, extending a one-month decline of more than 11% . The 200-day moving average has broken, putting trend-following traders on the sell side . SGOL itself has fallen from a 52-week high of $52.84 to today's $39.24 — a 25.7% peak-to-trough drawdown that tests shareholder patience.
• The Fed Leadership Change Adds Uncertainty. New Chair Kevin Warsh took over on May 15, inheriting a deeply divided committee . Prediction-market odds of a 2026 rate hike jumped from 25% to 52% in the past week . If Warsh leans hawkish, the "higher for longer" rate outlook hardens further, extending gold's headwinds.
• Central Bank Buying Remains the Bull Case — But It's a Slow Burn. Central banks bought 244 tonnes of gold on a net basis in Q1 2026, up 3% year-over-year . That structural demand supports a long-term floor but cannot offset short-term liquidation driven by rate repricing. SGOL's trading volume hit 3.77 million shares today versus a 2.63 million daily average , signaling active repositioning, not panic — but shareholders should brace for continued volatility until the Fed's June 16–17 meeting clarifies the rate path.