The direct impact of the ongoing geopolitical tension at the international level is now visible on the Indian bullion market. As soon as trading started on Multi Commodity Exchange (MCX) on Thursday, a huge fall in the prices of gold and silver was recorded. Especially silver has given a big shock to the investors, whose prices have fallen to around Rs 5,000 per kg. At the same time, a softening in gold prices has also been seen. The price of gold has also fallen by about Rs 1,200.
Silver boom, gold prices also fall
Heavy selling was seen in the prices of silver for delivery in May 2026 in the domestic futures market (MCX). Silver fell by Rs 4,785 (about 2 percent) to Rs 2,35,133 per kg. On the other hand, the futures price of gold for delivery in June 2026 fell by Rs 1,229 (0.8 percent) and slipped to Rs 1,50,647 per 10 grams. However, later there has been a slight recovery in the prices of both.
If we talk about the international market, there is an atmosphere of laziness there too. Spot gold was almost unchanged at $4,715.42 an ounce, while US gold futures fell 0.8 percent to $4,739.20. Apart from this, spot silver was also seen slipping 0.4 percent and trading at $ 73.83 an ounce.
Understand the reason behind the decline
Many global reasons are working together behind this huge fluctuation. The biggest reason is the minutes (details) released of the meeting of the US Federal Reserve on March 17-18. It has become clear from this that many policy makers are in favor of further increase in interest rates to bring the inflation rate back to the target of 2 percent.
Apart from this, the ongoing military tension in the Middle East is badly affecting the market sentiments. There remains uncertainty regarding the US-Iran ceasefire. The situation is critical due to Israel’s aggressive actions against Hezbollah in Lebanon and Iran’s targeting of regional energy infrastructure. The news of stoppage of movement of oil tankers through the Strait of Hormuz has also increased the concern of investors. However, US Vice President JD Vance is leading diplomatic efforts in Islamabad, which has raised hopes of reopening of this important sea route and reducing tensions. Meanwhile, the strength of the dollar and rising bond yields have also put huge pressure on gold, which is considered a safe investment.
This is advice for investors
Amidst this turmoil, common buyers and investors need to be very cautious. The market is now eyeing the February Personal Consumption Expenditure (PCE) data and weekly jobless claims in the US, which will decide the future direction.
According to Jigar Trivedi of IndusInd Securities, from a technical point of view, there is a strong support at the level of Rs 1,50,000 per 10 grams for June futures gold on MCX. At the same time, resistance (obstacle) is being seen on the upside at Rs 1,53,000. Experts believe that despite these immediate shocks, the overall outlook of the market still remains positive.
Also read- Silver became expensive by Rs 11,000 in a single day, gold also went out of control!