Who is involved
Gold prices on the Multi Commodity Exchange (MCX) have taken a nosedive, opening 3% lower at ₹1,40,158 per 10 grams. This marks a stark contrast to prior expectations where prices were anticipated to stabilize amidst fluctuating global markets.
The decisive moment came when MCX gold hit a low of ₹1,33,352, slipping as much as ₹11,140, or 7.70%. Not only gold but silver also faced a significant downturn, with MCX silver price opening 4% lower at ₹2,17,702 per kg and crashing as much as 11.31% to ₹2,01,111 per kg.
As of 11:15 AM, MCX gold was trading lower by ₹10,896, or 7.54%, at ₹1,33,596 per 10 grams. Meanwhile, MCX silver was down by ₹24,117, or 10.63%, at ₹2,02,655 per kg. This rapid decline has left investors scrambling for answers as gold prices crashed more than 10% last week alone.
In March, MCX gold prices have plummeted approximately 15%, while silver rates have dropped a staggering 25%. This downturn is not just a local phenomenon; it reflects sustained global weakness in precious metals, driven by geopolitical tensions and rising crude oil prices.
Experts are weighing in on the situation. Jigar Trivedi notes that MCX gold may find support at ₹1,33,000 – ₹1,30,000 levels, while resistance is seen at ₹1,40,000 – ₹1,44,000 levels. Ajay Kedia adds, “The overall trend for gold prices remains negative, and investors can sell on rise from these levels.”
The sharp decline in gold prices is closely linked to escalating geopolitical tensions, particularly the ongoing conflict involving the United States and Iran. Higher oil prices are also contributing to the situation, increasing production and transportation costs globally, which feeds into broader inflation.
As the market adjusts to these new realities, the probability of a rate hike at the upcoming June 2026 Federal Reserve meeting has risen to approximately 22%. This adds another layer of complexity for investors navigating the current landscape of gold and silver prices.
