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Informist, Monday, Mar. 23, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver fell sharply on the Multi Commodity Exchange of India and the COMEX Monday amid the ongoing military hostilities in West Asia, which have raised concerns over inflation that could prompt global central banks to keep rates higher for longer, analysts said. Gold and silver futures have erased all the gains for this year, falling to $4,100 per ounce and below $62 per ounce levels, respectively.

 

At 1634 IST, the most-active April GOLD contract on the MCX was down 6% at INR 136,386 per 10 grams. The most-active April contract on COMEX was down 7% at $4,274.1 per ounce. The most-active May SILVER contract on the MCX was down 5% at INR 214,455 per kilogram. The same month contract on the COMEX was down 8% at $64.22 per ounce.

 

On COMEX, gold prices hit a low of $4,100 per ounce and silver hit a low of $61.21 per ounce earlier in the day. On the MCX, gold prices hit a low of INR 129,595 per 10 grams while silver hit a low of INR 199,643 per kg. Domestic gold prices have fallen over 28% from the record high reached on Jan. 29, while silver has plunged over 52% from its all-time high.

 

"This steep fall reflects a broader global risk-off sentiment. The correction is largely driven by a widespread sell-off across asset classes, including Dubai's real estate market, cryptocurrencies, and equities," analysts at Kedia Advisory said in a note. "Additionally, the US Federal Reserve's hawkish stance -- indicating limited rate cuts in 2026 and even the possibility of rate hikes -- has strengthened the dollar, reducing the appeal of non-yielding assets like bullion," analysts added.

 

Precious metals also fell on the domestic exchange tracking the international exchange due to a firm dollar. At 1637 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was up 0.5% at 100.1. A strong dollar makes commodities priced in the currency, such as gold and silver, less appealing for those holding other currencies, thereby denting demand.

 

The West Asia conflict entered its fourth week and has shown no signs of easing. On Sunday, Iran said it would completely shut down the Strait of Hormouz 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.

 

Precious metal prices also fell due to prospects of liquidity-driven sales amid West Asia conflict. 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. 

 

Additionally, the downtrend in bullion may continue in the near term. Domestic gold prices could test INR 115,000 per 10 grams while international prices could fall to $3,450-$3,500 per ounce. Silver prices may slide towards $50 per ounce and INR 175,000 per kg on MCX, analysts at Kedia Advisory said in a note. "However, historically, after initial war-driven corrections, bullion tends to recover in the later phase, suggesting potential support in the second half," analysts added.

 

Outlook for the rest of the session:

--MCX gold seen at INR 131,000–INR 137,500 per 10 grams

--COMEX gold seen at $4,200.0–$4,300.0 an ounce

--MCX silver seen at INR 200,000-INR 215,000 per kg

--COMEX silver seen at $60.00-$67.00 an ounce

End

 

US$1 = INR 93.98

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

 

Edited by Vandana Hingorani

 

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