Gold slides 20% into bear market as correction deepens further

Gold's 20% decline from record highs has pushed the precious metal into bear market territory, with silver following suit as the selloff in precious metals accelerates.

Gold fell into bear market territory, dropping more than 20% from its all-time highs reached earlier this year, as the precious metal's correction extended into a second month.

"The sharp correction this year may be unsettling for investors, but gold remains firmly within a long-term structural uptrend," Razan Hilal, market analyst at FOREX.com, said.

Silver prices extended their decline, with XAG/USD breaking below its 200-day simple moving average and approaching year-to-date lows, according to trading data. The simultaneous selloff in both precious metals has erased gains accumulated during the first quarter of 2026.

The key question for traders is whether current price levels represent a buying opportunity or if the correction has further room to run. The next major catalyst for gold will be upcoming US economic data releases that could shift expectations for Federal Reserve monetary policy.

The decline marks a sharp reversal from gold's rally earlier this year, when the metal reached record levels above its previous all-time high. The more than 20% drop meets the common definition of a bear market, though some analysts view the pullback as a healthy correction within a longer-term uptrend.

Silver has been hit harder than gold in percentage terms, with the white metal's break below the 200-day SMA pointing to potential for further downside. The technical breakdown puts silver's year-to-date low in focus as a key support level for traders monitoring the precious metals complex.

For investors weighing entry points, the correction has brought valuations closer to levels that historically attracted buying interest. However, the absence of a clear catalyst for a rebound leaves the near-term direction uncertain, with traders watching for signs of stabilization in both COMEX gold and silver futures.

This article is for informational purposes only and does not constitute investment advice.