Despite ongoing geopolitical tensions, bullion remained under pressure as markets focused on the likelihood of interest rates amid persistent inflation risks. Photo Credit: Reuters

Gold and silver prices crashed in the Indian domestic market on cues from the global market, where the Middle East conflict ⁠increased energy prices and ignited inflation concerns. It led to hopes of leading central banks keeping interest rates higher.

In the domestic market, gold prices dropped by 4.5 per cent or ₹6,990 to ₹147,889 per 10 gm against ₹1,54,879 at close on Wednesday, following the bearish sentiments in the global markets. Opening on a weak note at ₹151,637, the yellow metal continued to its downtrend with no buying support, according to the Indian Bullion and Jewelers Association of India data on Thursday.

At 1915 hours IST, gold for April delivery on MCX plunged by ₹9,966 to ₹1,43,049 per 10 grams, while June contract dipped 8 per cent to Rs 1,45,120.

Steady Fed rates

In the global market, gold nosedived by $257 or nearly 8 per cent to $4,561.90 an ounce. On COMEX, April gold contracts dropped to $4,555.14 an ounce. Prices have breached $4,700 as the US Fed held interest rates steady at 3.50-3.75 per cent, signaling uncertainty over the inflationary and economic impact of rising oil prices.

Silver, on the other hand, fell to ₹2,29,873 per kg against ₹2,49,907 at closed on Wednesday. On MCX, silver for delivery in May dropped by ₹27,254 a kg to ₹2,20,940.

In the global market, silver slipped by nearly 10 per cent or over $7 to $69/18 an ounce. On COMEX, silver May futures decreased to $69.34, a fall of over 10 per cent.

Manav Modi Commodities Analyst, Motilal Oswal Financial Services, said despite ongoing geopolitical tensions, bullion remained under pressure as markets focused on the likelihood of interest rates amid persistent inflation risks.

Crude above $100

Crude oil prices remained elevated above $100 per barrel as the US-Israel conflict with Iran showed no signs of easing, following reports of an Israeli strike that killed senior Iranian official Ali Larijani and a subsequent attack on the world’s largest natural gas field shared by Iran and Qatar. Disruptions in the Strait of Hormuz, a key global oil transit route, have pushed crude prices near four-year highs, intensifying concerns over energy-driven inflation, he added.

While the Fed maintained its long-term inflation target of 2 per cent, markets now expect policymakers to remain cautious, limiting upside in gold despite ongoing safe-haven demand, he said.

Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said gold witnessed a steep decline of over $100 in a single session and nearly $300 in the last two days due to strong macro headwinds continue to weigh on prices.

Recent data indicates gold has slipped to one-month lows near $4710, pressured by a stronger dollar and higher bond yields, he said.

Inflation risks

Despite geopolitical tensions typically supporting haven demand, the current environment is dominated by inflation-led policy tightening expectations. Rising oil prices are further reinforcing inflation risks, reducing the likelihood of near-term rate cuts, he added.

Jigar Trivedi, Senior Research Analyst, Indusind Securities, said gold fell for a seventh day as the escalating war in the West Asia drove oil prices higher and reduced prospects for a US interest-rate cut in the near term.

Despite the recent fall, bullion prices are still up over 10 per cent so far this year, though upward momentum has stalled in recent weeks as prospects for a near-term rate cut have faded and some investors sold the metal to meet margin calls elsewhere in their portfolios, he said.

Renisha Chainani, head of research at Augmont, said gold and silver remain under pressure as elevated real yields continue to cap upside.

Published on March 19, 2026

The sell-off, triggered by the escalating Israel-Iran conflict that sent Brent crude surging past $114 per barrel, wiped out the gains of the past three sessions in a single day.

Markets suffered their worst single-day fall since June 2024 on Thursday, with the BSE Sensex and the Nifty50 closing 3.3 per cent lower, weighed down by HDFC Bank, spike in crude prices and the hawkish tone adopted by the US Federal Reserve, which kept interest rates unchanged.

The Sensex fell nearly 2500 points and Nifty tumbled over 775 points, with Shriram Finance, Eternal, and HDFC Bank leading the losses. HDFC Bank, which had fallen to a 52-week low of ₹770 in opening trade, recovered to end 5.1 per cent lower.

India VIX

The volatility indicator India VIX surged over 21 per cent to 22.80. The sell-off, triggered by the escalating Israel-Iran conflict that sent Brent crude surging past $114 per barrel, wiped out the gains of the past three sessions in a single day. Disruptions in the Strait of Hormuz — a critical global oil transit corridor — pushed crude prices near four-year highs, rattling energy-import-dependent economies like India. Natural gas prices surged over 6 per cent following reports of damage to key LNG infrastructure.

The US Federal Reserve’s decision to hold benchmark rates steady at 3.50 per cent–3.75 per cent, while signaling a higher inflation outlook due to rising energy prices, compounded the negative sentiment.

“…the near-term outlook remains strongly bearish, and any pullback towards resistance levels is likely to be sold into unless sentiment improves materially,” said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.

The Nifty opened with a gap-down of 580 points, staged a brief 15-minute recovery attempt, then slid lower after 1 pm, closing near its one-year low. Bank Nifty fell 3.4 per cent. All sectoral indices closed in the red with auto, realty, financial services and private bank indices among the deepest losers. Downstream oil refiners, paint companies, tire manufacturers and aviation stocks bore additional pain from margin-compression fears. The Nifty Midcap 100 fell 3.19 per cent and the Nifty Smallcap 100 dropped 2.94 per cent.

Globally, Asian markets closed sharply lower: Japan’s Nikkei 225 fell 3.38 per cent to 53,372.50; Hang Seng declined 2.02 per cent to 25,500.60; South Korea’s Kospi dropped 2.73 per cent to 5,763.22; Taiwan Weighted loss 1.92 per cent; Shanghai Composite shed 1.39 per cent to 4,006.55; and Australia’s ASX 200 fell 1.65 per cent to 8,497.80. Bangladesh’s DSE 30 bucked the trend, rising 0.37 per cent. Equities across Europe also down in the range of 1-4 per cent.

Gold falls over 3.4%

Contrary to expectations, safe-haven assets offered no refuge. Gold fell over 3.4 per cent on Comex, breaching $4,700, while silver dropped nearly 6 per cent, as the Fed’s hawkish posture strengthened the dollar. DII-buying provided only partial cushion. As against FPI selling of ₹7,207 crore, DIIs bought shares worth ₹3,410 crore.

Technically, the Nifty has breached its prior swing low of 22,955, slipping below all major moving averages. Immediate support lies at 22,700–22,500, while the 23,378–23,618 gap zone acts as stiff resistance.

“…any pullback is likely to attract selling pressure as long as the index trades below its 21-day EMA,” said Vishnu Kant Upadhyay, AVP Research Advisory, Master Capital Services.

Markets will track geopolitical developments, crude price trajectory, and policy decisions from the Bank of England and the European Central Bank in the coming sessions. Analysts say a clear de-escalation in West Asia tensions is the only near-term catalyst that could arrest the downtrend, failing which the index remains biased toward further weakness.

Published on March 19, 2026