New Delhi, April 18 -- Last year, amid global uncertainty and concerns over structural weakening of the dollar, gold emerged as the standout asset coveted by everyone from central banks to retail investors. A demand-supply mismatch pushed prices higher, with gold ETFs even trading at premiums. The stage seemed set for a sustained rally, so much so that Gen Z investors in my circle, once fixated on crypto and small caps, were keen to double down on gold. The metal clearly outshone other asset classes.

Cut to the present, despite the war in West Asia, gold has lost some of its safe-haven shine. The reason lies in the nature of this crisis. This time, the conflict is disrupting energy supplies, fuelling inflation concerns and pushing intere...