New Delhi, March 20 -- Gold prices have seen a sharp drawdown from all-time high levels hit in January this year as investors booked profits following one-way rallies. Now, a fresh catalyst has emerged, which is aiding the bearish sentiment - the US-Iran war.

The US spot gold prices have declined in the last seven consecutive sessions ending March 19, only to rebound today. Since the onset of the Middle East crisis, gold prices have slumped 12% in March so far, looking to snap their six-month winning run. From its all-time peak of $5,595/ounce, the prices have slumped 17%.

Contrary to the trend, gold prices, which ideally should have risen on safe-haven demand, have been knocked down amid the escalating tensions in the Middle East. You ...