MUMBAI, March 6 -- Geopolitical crises usually trigger a predictable market reflex: investors rush into precious metals. The latest escalation in West Asia initially followed that script.

Gold and silver spiked 5% and 9%, respectively, on 2 March, as markets reacted to the US-Israel-Iran flare-up over that weekend. But both have since fallen 4% and 10%, erasing most of those gains. The sharp swings have puzzled investors who expected a steadier safe-haven rally.

The answer lies in a mix of stretched valuations, macroeconomic constraints and market liquidity, factors that suggest gold and silver may not behave like classic safe havens during the latest conflict.

Mint explains.

Part of the answer lies in how far the metals have already ...