On MCX, gold for April delivery was down 3 per cent at ₹139,542 per 10 g
Gold prices crashed 5 per cent or ₹7,649 to ₹1,39,569 per 10 grams against ₹147,218 on Friday, largely taking cues from the global markets where it witnessed the sharpest monthly fall since 1975.
Similarly, silver plunged 6 per cent or ₹13,104 to ₹219,260 per kg against ₹232,364 as most financial investors dumped their holding through exchange traded funds.
With the ongoing war between the US and Iran showing no signs of abating, financial investors preferred to encash their leveraged investments on the fear of US Fed inflation outlook forcing a hike key bank rates than the possibility of cutting it.
Ides of March?
On MCX, gold for April delivery was down 3 per cent at ₹139,542 per 10 g, while June contract was down 4 per cent at ₹142,263 as global sell-off rattled the markets.
The silver May and July contracts dipped three per cent each to ₹220,649 a kg and ₹224,999.
Gold prices have already plunged 20 per cent in March to $4,263 an ounce, making it the most severe one-month correction in over five decades.
Previous major declines were seen in 1978, 1980, 1983 and in 2008 financial crisis—but none matched the intensity of the current fall.
Hawkish Fed
Ajay Kedia, Director, Kedia Commodities, said a broad-based global sell-off across asset classes including equities, crypto, and real estate has led to forced liquidation in bullion.
Additionally, the US Fed’s hawkish stance, with reduced expectations of rate cuts and rising talks of potential rate hikes, has strengthened the dollar significantly, he said.
Moreover, heavy ETF outflows and profit booking after record highs have accelerated the decline.
Jigar Trivedi, Senior Research Analyst at Indusind Securities, said MCX gold has declined 28 per cent from its all-time high, while MCX silver has plunged 52 per cent from an all-time high as macro factors, particularly real yields, the dollar and interest rate expectations, remained the key constraints on further upside.
Inflation fears
The macro forces that outweigh geopolitics include high energy prices complicating inflation outlook and ETF outflows, he added.
Manav Modi, Commodities Analyst, Motilal Oswal Financial Services, said the conflict between the US and Iran has now entered its fourth consecutive week, with continued hostilities raising fears of prolonged disruptions in global energy supply.
Markets now expect that sustained high oil prices could force central banks to adopt a more hawkish stance, limiting the appeal of non-yielding assets like gold, he added.
Overall, the transition from rate cuts to potential hikes amid persistent inflation fears has significantly pressured gold prices despite ongoing geopolitical uncertainty, he said.
Published on March 23, 2026
