New Delhi, March 17 -- A full-scale war, increased geopolitical risks, sticky inflation, and faltering economic growth-each of these factors is a major driver of gold prices. Together, they can potentially send the yellow metal soaring. Yet, even a confluence of these factors has failed to trigger a sharp upside in gold prices. In fact, the metal is undergoing a correction despite the presence of all these factors simultaneously.

US Gold Futures have shed more than 4% in March so far, as the combined forces of the U.S. and Israel are at war with Iran, with the latter also strongly retaliating. Domestic spot gold prices, as per the MCX data, have declined by more than Rs.3,000, or 2%, per 10 grams this month.

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