A Bear Market...in Gold

Gold joins the parade of commodities which have technically entered bear market territory as defined by a 20% or more correction in price from the high. As of this writing, gold has declined 21.5% from the highs it hit in March (amidst the Bear Stearns bailout). Gold is now down roughly 6% for the year. Gold has averaged a 34% decline during bear market periods. The inverse of gold is the US dollar and, interestingly, the dollar has hit a 2 year high against the pound.