Gold prices remained under pressure on March 19, slipping below the ₹1.55 lakh mark on the Multi Commodity Exchange (MCX) as weak global cues, US Federal Reserve policy signals, and ongoing geopolitical tensions weighed on investor sentiment. Silver, meanwhile, extended its sharp decline, trading below ₹2.50 lakh per kg in domestic markets.
On the MCX, gold hovered around ₹1,55,000 per 10 grams, reflecting a subdued trend through March, during which prices have already declined nearly 4%. Silver saw steeper losses, falling about 16% this month, with prices around ₹2,50,000 per kg.
Why gold prices are falling
The recent weakness in bullion prices follows the latest policy decision by the US Federal Reserve, which kept interest rates unchanged for the second consecutive meeting. The benchmark rate currently stands at 3.5%–3.75%, in line with market expectations.
However, cautious commentary from Fed Chair Jerome Powell and persistent inflation concerns have dampened hopes of near-term rate cuts. Higher interest rates typically reduce the appeal of non-yielding assets like gold, limiting upside momentum.
Adding to the pressure are elevated crude oil prices amid the ongoing conflict involving Iran and US-Israeli forces, which has heightened inflation risks globally. While gold is traditionally seen as a safe-haven asset during geopolitical uncertainty, the current environment of high yields and strong dollar has capped gains.
Global trend mirrors domestic weakness
In international markets, spot gold slipped over 1% to around $4,836 per ounce, while silver dropped more than 2% to $75.75 per ounce. Analysts attribute the volatility to a mix of macroeconomic uncertainty, geopolitical tensions, and shifting expectations around monetary policy.
Analysts believe that while near-term upside in gold may remain capped due to high bond yields, any escalation in geopolitical tensions or dovish signals from the Fed could revive safe-haven demand.
As markets remain volatile, investors are advised to stay cautious and align their strategies with both global triggers and domestic demand trends during the festive buying season.
Sofia Babu Chacko is a journalist with over five years of experience reporting on Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes journalism plays a crucial role in amplifying unheard voices and bringing attention to issues that truly matter. Sofia has contributed articles to The New Indian Express, Youth Ki Awaaz, and Maktoob Media. She is also a recipient of the 2025 Laadli Media Awards for gender sensitivity. Beyond the newsroom, she is a music enthusiast who enjoys singing. Connect with Sofia on X: https://x.com/SBCism
