Price of gold down nearly 20% from recent March peak, but why?

"All that glitters is not gold," or so the saying goes but right now, gold itself isn't looking particularly shiny either.

In fact, gold prices are down almost 20% from their recent March peak.

That puts the precious metal on the cusp of a bear market, which is strange because this should be the perfect time to own gold.

Historically, it rallies when inflation is high and is a firm favorite in periods of geopolitical uncertainty, when it's seen as a safe haven.

So what's behind the curious case of falling gold prices?

Call it the "Fed effect," CNN reported.

Combined with other factors, the Federal Reserve's aggressive interest rate hikes have pushed the U.S. dollar to a two-decade high. That makes gold more expensive for foreign investors because gold transactions usually happen in dollars. This can reduce demand, pushing prices down.

Also, bond yields have jumped, making gold look like a less attractive option to investors.