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Informist, Friday, Mar. 20, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and the COMEX on Friday after a sharp correction in the last two sessions. Silver futures were also in the green after closing in the red in the last seven sessions. However, the gains in bullion prices were limited as a surge in crude oil prices has raised concerns about inflation, which could prompt global central banks to keep rates higher for longer.

 

At 1735 IST, the most-active April GOLD contract on the MCX was up 1.6% at INR 147,197 per 10 grams. The most-active April contract on COMEX was up 1.3% at $4,665.8 per ounce. The most-active May SILVER contract on the MCX was up 1.2% at INR 234,241 per kilogram. The same month contract on the COMEX was up 1.5% at $72.26 per ounce.

 

Gold prices are on track for the steepest weekly decline in six years, according to Kotak Securities. Silver is heading for a third straight weekly fall. "The broader weakness reflects a decisive macro shift: energy-driven inflation has lifted Treasury yields and strengthened the US dollar, prompting capital rotation away from non-yielding safe-haven assets. Sustained outflows from bullion-backed ETFs (exchange-traded funds), forced liquidation to cover cross-asset losses has added to downside pressure," the brokerage said in a report.

 

COMEX gold prices fell to a low of $4,505.0 per ounce in the previous session while silver prices fell to a low of $65.55 per ounce, after the US Federal Open Market Committee Wednesday said it sees only one rate cut for the rest of the year. The US FOMC left the federal funds target range unchanged at 3.50-3.75%, as was widely expected. The summary of economic projections released along with the rate decision showed only one 25-bps rate reduction in the policy rate in 2026 as per the median of expectations of Fed officials, after 100 bps of easing in 2024 and 75 bps in 2025.

 

Gold prices are likely to decline further as energy prices rise further, threatening to push longer-term inflation expectations higher, Thu Lan Nguyen, head of FX and commodity research at Commerzbank AG, said in a report.

 

"With the Fed and other major central banks maintaining a hawkish bias and rate cuts deferred, the opportunity cost of holding bullion remains elevated. Near term, inflation persistence and yield strength are likely to cap upside, even as geopolitical uncertainty provides intermittent support," Kotak Securities said.  End

 

US$1 = INR 93.71

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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