The decline in gold prices has opened up purchasing possibilities for investors seeking exposure to the precious metal.
This is explained by High Yield Investor analyst Samuel Smith, who argued in his latest report released yesterday, June 9, 2026, that the recent economic downturn does not change the fundamentals that will drive gold beyond the end of 2023.
Although not mentioned by Smith, that interpretation also includes PAXG and XAUT, two physical gold-backed digital assets issued by Paxos and Tether, respectively. You will be able to track the price of metals within the digital asset market. There is no need to trade directly with bullion or mining stocks.
At the time of publishing this article (June 10, 2026), gold is trading around $4,160 per ounce. This level confirms that the stock has entered bear territory after falling more than 20% from historic highs reached at the beginning of the year.
The pullback occurred after a strong bull market. Smith said some of the decline is in response to a natural correction after an accelerated rally. However, the analyst revealed: There were macroeconomic factors that increased pressure on metals.
“The outbreak of war with Iran has caused oil prices to rise significantly,” Smith explained. This is due to concerns that the conflict could disrupt shipping through the Strait of Hormuz. The sea route between Iran and Oman circulates about 20% of the oil traded around the world under normal conditions.as reported by CriptoNoticias.
This rise in energy prices has raised expectations that inflation will continue in the United States. As a result, the market began to believe that the Federal Reserve has less room to cut interest rates and may even be forced to continue raising them for an extended period of time.
Gold often benefits from periods of geopolitical uncertainty, but higher interest rates reduce returns. Its relative attractiveness compared to yield-producing assets such as U.S. Treasuries and money market funds.
“Gold is often considered a store of value compared to cash, so the higher the return on cash, the less attractive gold becomes as a savings vehicle,” Smith said.
The analyst said Turkiye and Russia had sold some of their gold reserves. In the case of Türkiye, to support the national currency after regional conflicts. In Russian, to cover costs and other budgetary needs related to the Ukraine war.
“This represented a setback for the market, generated headlines that scared some investors, and led investors to take a more bearish stance on gold,” Smith said.
Bullish view on gold remains unchanged
Despite the correction, Smith believes there are still structural factors driving gold. “Structural demand for gold remains unchanged, especially from central banks, especially China, which remains a net buyer, and several other central banks have increased the proportion of gold in their reserves,” the analyst said.
He also recently Gold has overtaken the US dollar as central banks’ main reserve asset.
The analyst added that rising US debt, geopolitical tensions in the Middle East, Ukraine and Asia, and central bank purchases continue to support demand for the metal.
“The fundamental factors that drove the recent bull run in gold remain strong over the long term,” he said.
He then cited the example of gold’s return of over 178% from late 2023 to early June 2026. For Smith, this journey does not negate the potential for another rally; rather, he believes the current correction provides an attractive entry point for investors with long-term strategies.
JP Morgan maintains a similar vision. Group predicts gold will arrive It will average $6,000 per ounce in the fourth quarter of 2026 and approach $6,300 per ounce by the end of 2027.
Greg Shearer, the company’s head of precious metals, said the market is currently undergoing a phase of uncertainty. “Gold is stuck in a kind of technological no-man’s land,” he said. But he added: Risks related to inflation, declining purchasing power, fiscal concerns, and geopolitical fragmentation continue to drive demand for gold as a store of value.
Risks gold still faces
Not all analysts believe a recovery is imminent. Goldman Sachs maintained its forecast of $5,400 an ounce by the end of 2026, but warned that the path could remain volatile.
“We see near-term risks to our gold forecast as skewed to the downside,” analysts Lina Thomas and Daan Struiben wrote in a note.
The group argues that the metal remains vulnerable to new liquidations if tensions in the Strait of Hormuz continue. Goldman analysts warn that bond and stock markets could eventually correct. Causing additional gold sales to cover losses in other assets.
JP Morgan also points out similar risks. “The most important downside risk to our view is a scenario in which U.S. growth and employment remain strong while inflation continues to accelerate,” Shearer said.
after that, A more aggressive Fed could weaken investor demand for gold.
For now, those maintaining a bullish view believe the current correction represents an opportunity to accumulate exposure to the metal. If that theory becomes popular, PAXG and XAUT could be accompanied by a recovery in gold if the uncertainties currently dominating the global scenario reduce.
