Why Gold Prices Are Correcting Despite Global Tensions | Explained By Sugandha Sachdeva

Gold prices have corrected sharply from their recent highs despite renewed geopolitical tensions, as a stronger US dollar and expectations of tighter Federal Reserve policy continue to weigh on the precious metal. Sugandha Sachdeva, Founder, SS Wealth Street, says rising US inflation, robust economic data and higher rate expectations have strengthened the dollar, reducing gold's appeal. She also highlights significant outflows from global gold ETFs as investors book profits after the recent rally. According to Sugandha Sachdeva, gold is likely to remain in a consolidation phase, with any meaningful recovery depending on a sustained decline in the US dollar index.