Gold Approaches Bear Market as Bottom Fishers and Value Investors Rush In

Precious Metal's 30 Percent Plunge From Record Highs Attracts Contrarian Buyers Despite Ongoing Risks\n\nGold is approaching bear market territory — defined as a 20% decline from highs — yet contrarian investors are rushing to buy the dip, creating a sharp divergence between momentum and value investors.\n\n### The Situation\n\n- Gold price approaching bear market territory, down significantly from record highs\n- Bottom fishers and value investors actively buying\n- Goldman Sachs contacts increasingly bearish on near-term outlook\n- Conflict premium partially unwinding as Iran war drags on\n\n### Why Gold Is Falling\n\nSeveral factors are driving gold's decline: unwinding of geopolitical risk premium as the Iran conflict enters a prolonged phase, rising real yields as markets price in potential Fed rate hikes, and profit-taking by institutional investors who bought gold as a hedge during the initial conflict escalation.\n\n### The Bull Case for Buyers\n\nContrarian buyers argue that gold's long-term fundamentals remain strong: persistent inflation, geopolitical uncertainty, and central bank gold purchases continue. The current pullback is seen as a buying opportunity.\n\n### Risks Remain\n\nHowever, risks to gold bulls are significant: if the Iran war de-escalates, gold could fall further. And if the Fed actually raises rates, real yields would pressure gold prices even more.\n\nSource: Wall Street CN