MCX gold falls over ₹12,700/10g, silver down ₹29,600/kg this week. Is safe-haven demand fading?

Precious metals often act as safe havens during uncertainty. Their decline suggests either reduced risk aversion or a stronger dollar, impacting investor asset allocation.

• •MCX gold and silver prices are set for their biggest weekly drop in over a month.
• •Gold has fallen by ₹15,000 this month, and silver by nearly ₹29,645.
• •The decline is attributed to inflation fears from rising crude oil prices and cautious central bank policies.
• •Risk flag: Sudden escalation of geopolitical tensions could reverse trend
• •Risk flag: Changes in central bank policy outlook