Global Precious Metals Market Update

Market Trends

On 12 March, the COMEX gold futures contract dropped $64.4 to a day's low of $5,114.6 per troy ounce, erasing nearly half of the previous session's gains. The COMEX Silver May contract also fell, dropping $1.47 per troy ounce to reach the day's low of $84.06.

Middle East Tensions and Global Economic Pressures

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

The ongoing Israel-Iran conflict has escalated into its 13th day, with both sides continuing to ramp up attacks using missiles and drones. Iran has targeted energy infrastructure and US embassy offices across the Gulf region, keeping crude oil prices elevated. The conflict has raised concerns about global economic pressures, with economists warning that a prolonged conflict could significantly amplify economic pressures.

Crude Oil Prices and Global Growth

Crude oil prices have risen rapidly, posing a risk to global growth. Economists warn that a prolonged conflict in the Middle East could amplify economic pressures. Last week, Qatar projected crude oil prices could reach $150 per barrel if the war extends. Iran has effectively taken control of the Strait of Hormuz, through which about one-fifth of global oil trade passes.

Strong US Dollar Caps Gains in Gold and Silver

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

The US dollar index has strengthened, rising more than 1.5% against a basket of major currencies, making dollar-priced commodities more expensive for holders of other currencies. The world's reserve currency is now close to its highest level since November, partly due to its safe-haven appeal.

Domestic Market Update

In the domestic market, MCX gold futures fell ₹1,328 per 10 grams to reach the day's low of ₹1,60,461 per 10 grams. MCX silver futures also declined, falling ₹2,317 per kilogram to reach ₹2,66,174.