Gold and silver prices tumbled sharply on March 19, as investors reacted to weak global cues and a stronger dollar. At the time of writing, gold was trading at Rs 146,181 per 10 grams, down Rs 6,844 or 4.47%, while silver slipped to Rs 228,947 per kg, down Rs 19,797 or 7.98%. The fall comes amid global interest rate concerns and ongoing geopolitical tensions.
GLOBAL CUES AND FED’S HAWKISH TONE HIT PRICES
The decline in bullion was triggered after the US Federal Reserve kept rates unchanged at 3.5%–3.75%, while maintaining a hawkish stance. This dampened hopes of any near-term rate cuts.
The decline comes after the US Federal Reserve kept interest rates unchanged at 3.5%–3.75% but maintained a hawkish stance, reducing hopes for near-term rate cuts. On MCX, silver futures dropped 1.5% while gold slipped 1%, reflecting pressure from global markets and a stronger dollar.
Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, said, “Gold traded sharply lower near $4,700, witnessing a steep decline of over $100 in a single session and nearly $300 in the last two days. Strong macro headwinds, rising crude prices, and ongoing tensions in Iran are weighing heavily on prices. Despite geopolitical risks, inflation-led policy tightening is dominating, which is negative for non-yielding assets like gold.”
Silver futures on MCX also fell 1.5%, while gold slipped 1%, reflecting global pressure and expectations of a stronger dollar.
TECHNICAL TRENDS AND MARKET OUTLOOK
On MCX, gold remains technically weak, with resistance now shifting lower towards Rs 1,50,000, and key support seen in the Rs 1,44,000–Rs 1,42,000 range. Rising crude oil prices and geopolitical tensions involving Iran continue to reinforce inflation risks, making investors cautious.
Ponmudi R, CEO of Enrich Money, said, “Gold declined by over 3.4% and silver by nearly 6%, indicating profit booking or possible liquidity-driven unwinding rather than a pure flight to safety.”
The fall has caught buyers’ attention ahead of the wedding season, when demand usually spikes for jewellery and gifts.
WHAT INVESTORS SHOULD DO
Experts suggest staying cautious in the short term. Investors looking to buy gold or silver should watch for dips near technical support zones before entering the market. Long-term investors may continue to use systematic or staggered buying to avoid timing risks. Keeping an eye on global interest rate updates, crude oil trends, and geopolitical developments will remain crucial for price movement in the coming weeks.
With the wedding season approaching, buyers are watching prices closely, balancing between immediate demand and expectations of further corrections.
