Gold officially crossed into bear market territory on June 9, falling more than 20% from its January peak. It’s the first time the yellow metal has earned that grim label since 2022, and it comes just months after gold was the trade that could do no wrong.
The decline took gold from an all-time high near $5,600 per ounce in late January to a range of roughly $4,100 to $4,300 by mid-June.
What triggered the selloff
On June 9 alone, gold spot prices dropped 3.2%, snapping a remarkable streak of 660 consecutive days trading above the 200-day moving average.
A strengthening US dollar has made gold more expensive for international buyers. Rising real yields, meaning the returns on government bonds after accounting for inflation, have made the opportunity cost of holding a non-yielding asset like gold significantly steeper.
