Gold sees worst weekly fall in 40 years: Is it still a safe haven? Experts weigh in

Gold is considered an extremely safe investment, and it tends to deliver good returns come rain or shine. However, it witnessed a drop in price each week ever since the US & Israel carried out strikes on Iran on 28 February 2026.

Gold prices saw the steepest weekly decline last week since 1983. The prices dropped further on Monday by another 2% to $4,352 per troy ounce. The decline in prices came amid a spike of up to 50% in oil prices, adding to inflation concerns.

So, should investors hold on to their gold reserves or buy more? Experts argue that such phases (drop in prices) often create more balanced entry points for investors. One expert suggested that the investors can use the current prices to buy more gold in a staggered manner. However, the ideal ratio of gold in the overall portfolio is anywhere between 10% to 15%. 

Let us find out more about what experts have to say about the drop in gold prices.

Should you buy gold now?

The current drop in gold prices can be used to procure more gold. Senthil Kumar R, MD & CEO, Nitstone Finserv, says that such phases often create more balanced entry points for investors. “A disciplined, long-term approach with staggered investments can help navigate short-term volatility while benefiting from gold’s enduring strength and strategic role in portfolios,” he says. 

Echoing the same sentiments, Siddharth Alok, AVP Investments, EpsilonMoney, says this is actually a very good time for investors who missed the bus last time or do not have their asset allocation in place. “Gold has touched its 200-EMA (exponential moving average) for the first time in two years, which shows the panic among many investors, but for investors looking for at least three plus years time frame, this is a good time to begin their investments in a staggered manner,” adds Alok.

Stay invested

If you do not want to risk more money in a falling asset class, it is recommended to at least stay invested rather than panic, wealth advisors suggest.

"Predicting the short-term performance of different asset classes can be quite difficult. Therefore, it’s always prudent to stick to your asset allocation strategy and continue investing accordingly,” says Preeti Zende, founder of Apna Dhan Financial Services.

However, you could consider investing only if your allocation to the precious metal is too insignificant in your overall portfolio, i.e., less than 15%. “The long-term fundamentals—such as ongoing de-dollarisation and sustained central bank buying—remain intact. Accordingly, we recommend that investors continue to hold their gold allocations, while those who are under-allocated may consider using corrections as an opportunity to add exposure,” says Alekh Yadav, Head of Investment Products, Sanctum Wealth.

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