Gold Sinks Deeper Into Bear Market Territory

Sell-off extends as investors unwind positions amid stronger dollar and higher Treasury yields

Mar. 24, 2026 at 4:20am

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Gold prices extended their slide on Tuesday, deepening the precious metal's bear market territory, as investors continued to unwind positions. A stronger U.S. dollar and elevated Treasury yields reduced the appeal of the non-interest bearing bullion.

Why it matters

The decline in gold prices reflects broader macroeconomic shifts, including changing expectations around U.S. monetary policy and the strengthening of the dollar. This market movement could have implications for investors, central banks, and the broader economy.

The details

Spot gold prices declined 2% before paring losses to 1% at $4,335.97 per ounce. Gold futures for April delivery also cut losses and were last down over 1% at $4,358.80 per ounce. Spot silver was down more than 3% to $66.93 per ounce, while futures were 2.61% lower at $67.54. The dollar index, which measures the strength of the greenback against a basket of currencies, was up 0.5% on Tuesday. A stronger dollar reduces greenback-priced bullion's appeal by making it more expensive for holders of other currencies. Market participants have also been reassessing expectations for U.S. monetary policy, with persistent inflation reducing the likelihood of aggressive Federal Reserve rate cuts, keeping Treasury yields higher.

  • Gold has now lost over 22% since hitting a record high of $5,594.82 per ounce at the end of January.
  • Gold lost almost 10% last week in its worst showing since September 2011.

The players

Donald Trump

U.S. President who said he had ordered a 5-day pause on planned strikes against Iran's energy infrastructure following what he described as "productive" discussions with Iranian officials.

Rajat Bhattacharya

Senior investment specialist at Standard Chartered who said that gold initially gained due to safe haven demand at the start of the conflict, but prices have recently pulled back as investors raise cash to pay margin calls or book profits.

Zavier Wong

Market analyst at eToro who said that gold's recent rally to record highs was driven less by inflation than by a broader loss of confidence, and that after such a run, some position unwinding was inevitable.

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What they’re saying

“Although gold initially gained due to safe haven demand at the start of the conflict, prices have recently pulled back.”

— Rajat Bhattacharya, Senior investment specialist

“Gold's recent rally to record highs was driven less by inflation than by a broader loss of confidence: fiscal deficits, geopolitical fragmentation, and central banks quietly diversifying away from dollar reserves.”

— Zavier Wong, Market analyst

The takeaway

The decline in gold prices reflects broader macroeconomic shifts, including changing expectations around U.S. monetary policy and the strengthening of the dollar. This market movement could have implications for investors, central banks, and the broader economy as they navigate the evolving financial landscape.