Gold Prices Drop 12% From Peak: What's Next for Investors?

• Gold prices have fallen over 12% from their record high on January 28, pressured by a strong US dollar and Federal Reserve policy.
• Historically, a stronger US dollar puts pressure on gold prices as gold is traded in dollars; however, investors bought on dips, leading to a recovery.
• Experts remain positive on gold, but future gains depend on central bank purchases and investments in Gold ETFs, which have been key drivers.
• Gold serves as a hedge and provides security during uncertainty, rather than being a primary return-generating asset.
• Investors should consider rebalancing portfolios if over-invested in gold; phased investment in Gold ETFs, Gold Fund of Funds, or Multi-Asset Funds is recommended over physical gold.