New Delhi, March 20 -- MCX gold and silver prices are heading for their largest weekly decline in over a month, as traders shy away from precious metals, with concerns mounting that a sharp rise in crude oil prices could lead to prolonged inflation and potentially higher interest rates, thereby overshadowing the deepening tensions in the Middle East, which are now likely to extend into a fourth week.

Global central banks, including the US Federal Reserve, have recently sounded caution over the Middle East conflict, expecting its impact on prices to persist throughout this year, thereby diminishing hopes of near-term rate cuts.

Policymakers at the US central bank have said they will proceed with interest rate decisions only once inflatio...