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Why Are Gold Prices Dropping? Expert Analysis on Market Trends & Digital Gold | EP 103

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Gold prices have pulled back over 20% from their historic, gravity-defying peak of $5,608 an ounce down to the $4,750 consolidation zone. For investors and consumers alike, this sudden volatility raises a critical question: Is the historic precious metals bull run officially over, or are we witnessing a massive consolidation phase before a fresh breakout?

While a strengthening U.S. dollar, Fed policy shifts, and cooling geopolitical premiums (following intense U.S.-Iran frictions) have weighed heavily on global bullion, Modak argues that gold hasn’t lost its intrinsic allure. Instead, we are witnessing a textbook capital migration. As equity markets shake off their multi-month slumber and pick up momentum, investors are aggressively booking profits in gold ETFs—treating the asset class as a “safe parking lot” before rotating capital back into fast-moving equities.

Published on June 23, 2026



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