Gold rates and silver rates in India could take a huge hit on March 16, following weak global cues. In the early hours of Monday, spot gold price has plunged to struggle around $5,000 per ounce pivotal level.
This comes after bullion already recorded two consecutive weekly decline amidst volatile oil prices, firm dollar and rise in bond yields which increases inflationary fear and dulls the probability of rate cut from US Federal Reserve.
Meanwhile, spot silver price underperformed the most with over 1.3% decline to trade below $80 per ounce.
Over the weekend, the US attacked Iran’s main oil-export hub of Kharg Island, further increasing the global supply risks.
The strike prompted retaliatory attacks from Tehran on Israel and energy infrastructure across other Arab countries. The US-Israeli war on Iran has now entered its third week with no clear resolution in sight, rattling financial markets. Higher energy prices and mounting inflationary pressures have lowered expectations that the US Federal Reserve and other major central banks will cut interest rates, posing a headwind for non-yielding precious metals. The Fed is widely expected to hold its policy rate steady this week, while central banks in the Eurozone, the UK, Japan, Switzerland, Australia, Canada, China, Brazil, and Russia are also set to decide on monetary policy, as per Trading Economics.
Last week, MCX gold price with April 2026 expiry, closed the week below Rs 1.59 lakh mark and in a bearish note. The MCX gold price fell by Rs 66 0r 0.4% to end at Rs 1,58,400 per 10 grams after closing bell on March 13th. Meanwhile, MCX silver price with May 2026 expiry, ended the week on a bearish trend. MCX silver dropped by Rs 8,683 or 3.24% to end at Rs 2,59,279 per 1KG.