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Informist, Monday, Mar. 23, 2026

 

--MCX April gold contract down 5% at INR 137,598 per 10 gm 

--MCX May silver contract down 6% at INR 213,166 per kg 

--COMEX April gold contract down 5% at $4,364.5 per ounce 

--COMEX May silver contract down 6% at $65.5 per ounce 

 

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange plunged, tracking the steep fall in prices of futures on the COMEX. Prices of both precious metals fell as an escalation in the ongoing military hostilities in West Asia spurred fears of a rise in inflation, leading to concerns that central banks all over the globe could put a pause on rate cuts, or even hike them instead.

 

The conflict in West Asia entered its fourth week Monday, with no signs of de-escalation on either side. Iran said it would completely shut the Strait of Hormuz and launch retaliatory attacks on regional energy and water infrastructure if the US attacks its power plants, Al Jazeera reported. This comes in response to US President Donald Trump on Sunday giving Iran a two-day deadline to reopen the Strait of Hormuz or have its power plants bombed. Trump wrote on the social media platform Truth Social that the US would "hit and obliterate" Iranian power plants – "starting with the biggest one first" – if Tehran did not fully reopen the strait within 48 hours, or 2344 GMT on Monday (0514 IST on Tuesday), according to the time of his post, The Guardian reported.

 

Surging oil prices have raised inflationary risks and reduced the likelihood of near-term interest rate cuts by the US Federal Reserve and other central banks. Typically, higher interest rates make the non-yielding precious metal less appealing to investors. 

 

"With the Iranian conflict into its fourth week, and oil prices hanging around the $100 level, expectations ‌have pivoted from rate cuts to potential rate hikes, which has tarnished gold's appeal from a yield point of view," Reuters reported, quoting Tim Waterer, chief market analyst, KCM Trade, as saying. Market pricing for an interest rate hike by the US central bank this year has shot up, and is now seen as far more likely than a rate cut, as interest rate futures were pricing around a 27% chance of a rate hike by December, as per the CME FedWatch tool, the report said.

 

Prices of the precious metals also fell due to prospects of liquidity-driven sales amid the conflict in West Asia. Speculation is emerging that some economies may have to raise liquidity, potentially including gold sales, Dow Jones reported, quoting Saxo Bank's Ole Hansen as saying in a note. "While not a confirmed driver, it adds to the more cautious tone," the report quoted Hansen as saying.

 

At 0925 IST, the most-active April gold contract on the MCX was down 5% at INR 137,270 per 10 gm, while the same month contract on the COMEX was down 4.8% at $4,355.5 per ounce. The most-active May silver contract on the MCX was down 6.1% at INR 212,782 per kg, and the same month contract on the COMEX was down 5.9% at $65.3 per ounce.  End

 

US$1 = INR 93.87

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

 

Reported by Shreya Shetty

Edited by Avishek Dutta

 

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