Gold Slips Into a Bear Market for the First Time Since 2022
Gold has officially entered bear market territory. On June 9, the metal fell more than 20% from its January peak, marking the first time since 2022 that losses have met the standard definition of a bear market.
The slide has been swift. After reaching an all-time high around $5,600 an ounce in late January, gold dropped to roughly $4,100–$4,300 by mid-June.
The latest leg down was sharp: spot gold fell 3.2% on June 9, ending a streak of 660 straight sessions trading above its 200-day moving average.
Several macro forces have converged to pressure prices. A stronger U.S. dollar has raised the cost of gold for non-U.S. buyers. Rising real yields—inflation-adjusted government bond returns—have increased the opportunity cost of holding a non-yielding asset like gold. Robust U.S. jobs data have also shifted expectations away from rate cuts and back toward the possibility of additional Federal Reserve rate hikes.
Oil has climbed amid heightened Middle East tensions, pushing inflation expectations higher. When those same fears also increase the odds of tighter monetary policy, the overall effect can weigh on gold.
Gold's run-up into January had been fueled by powerful tailwinds. Prices traded around $5,598–$5,608 an ounce that month, levels that would have looked implausible a year earlier. Central banks had been steady buyers, adding bullion to reserves at a historic pace through 2024 and 2025. That demand, combined with geopolitical risk and expectations for easier policy, helped drive a 70% rally from mid-2025 lows.
The last time gold fell into bear market territory was in 2022, when the Federal Reserve's aggressive tightening cycle hit most asset classes.
For investors, the pullback is prompting revisions to near-term forecasts, with several analysts reportedly lowering short-term price targets. Longer-term views remain more constructive in some corners: institutions including J.P. Morgan have maintained optimistic expectations for later in 2026, arguing gold could regain ground as markets stabilize and inflation stays in focus.
Central-bank demand has not disappeared, and historical patterns suggest sovereign buying can help establish a floor during prolonged selloffs. At the same time, bitcoin has shown relative resilience as tightening liquidity conditions have weighed on gold, prompting investors to reassess how these assets behave across shifting macro regimes.
