As of March 2026, gold has struggled to fulfill its safe-haven role amid the West Asia conflict, with the Nippon India ETF Gold BeES dropping from ₹131.60 to ₹110.72, a nearly 16% decline. This downturn is largely attributed to rising Brent crude prices, which have fueled inflation fears and changed expectations regarding interest rates from the US Federal Reserve. Analysts, including Vishal Dhawan and Tapan Patel, note that higher US Treasury yields increase the opportunity cost of holding gold, leading investors to favor dollar-denominated assets. Additionally, central bank demand for gold has lessened as countries like Russia and Turkey adjust their buying strategies to support their currencies. Despite these challenges, experts remain optimistic about gold's long-term potential, suggesting that a 10-15% allocation to gold in investment portfolios is advisable. They anticipate that if central bank buying continues and US Fed rate cuts occur, gold could emerge from its current consolidation phase later in 2026.