Gold has entered bear market territory as a stronger U.S. dollar and rising interest rate expectations exert pressure on risk assets.
By James Van Straten|Edited by Jamie Crawley Jun 8, 2026, 9:57 a.m. 2 min readMake preferred on BTC/Gold Ratio (TradingView)Key Insights:
- Gold has fallen over 20% from its peak of $5,600 per ounce in January and is currently trading below its 200-day moving average.
- A stronger-than-anticipated U.S. jobs report has heightened expectations for a Federal Reserve interest rate hike, with the U.S. Dollar Index (DXY) rising above 100.
- The Bitcoin-to-gold ratio, which indicates how many ounces of gold can be bought with one bitcoin, has increased by 3% in the last 24 hours.
Gold has dipped below its 200-day moving average (200DMA), a key long-term technical indicator that reflects the average closing price over the previous 200 trading days.
Trading below the 200DMA is often seen as a signal that the long-term bullish trend is weakening and that a potential trend reversal could be occurring. This marks the first instance since October 2023 that gold has traded below this threshold, with current prices dropping below $4,300 per ounce.
Gold (TradingView)This decline follows a substantial rally during which gold prices skyrocketed nearly 200%, climbing from under $2,000 per ounce in October 2023 to a record high of $5,600 in January. A significant portion of this increase was attributed to the "debasement trade", which posited that government spending, escalating debt, and loose monetary policies would diminish fiat currency purchasing power, thus boosting demand for limited stores of value like gold.
Gold is now classified as being in bear market territory, having decreased over 20% from its all-time high. This latest downturn follows a stronger than expected U.S. jobs report released on Friday, leading markets to factor in a higher probability of tightening measures from the Federal Reserve. The CME FedWatch Tool now indicates a potential 25 basis point rate increase in December, which would adjust the federal funds rate to a range of 3.75% to 4.00%.
Silver, often seen as a more volatile counterpart to gold, is currently testing its own 200DMA support around $67 per ounce.
The Bitcoin BTC$62,945.93 to gold ratio has risen to 14.72 ounces, up 3% in the past day as Bitcoin approaches $63,000.
Despite this increase, the ratio is still approximately 70% lower than its December 2024 peak of about 41 ounces. Last month, the ratio faced resistance at its 200DMA, which preceded Bitcoin's drop below $60,000. Nevertheless, it remains above February's lows, providing a slight glimmer of hope for Bitcoin investors.
Additionally, the U.S. Dollar Index (DXY) has climbed back above 100, which typically poses challenges for commodities, gold, and cryptocurrencies by tightening global financial conditions, reducing liquidity, and making dollar-denominated assets pricier for international buyers.
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