Gold and Silver Prices Plummet Amid Escalating US-Iran Tensions

Gold and Silver Prices Continue to Fall Amid Escalating Middle East Tensions

Gold Price: The COMEX gold rate fell 3% to $4,462 per ounce on Monday, March 23, marking its eighth consecutive session of decline. This drop is attributed to rising oil prices, which have heightened inflation concerns and dampened expectations of near-term interest rate cuts by the US Federal Reserve and other global central banks.

Silver Price: Similarly, COMEX silver prices plunged 3% to $67.5 per ounce during the Asian trading hours on Monday. This decline is largely driven by profit-booking and a stronger US dollar.

Market Analysis: The escalation of tensions in the Middle East, particularly the warning by Donald Trump to Iran to reopen the Strait of Hormuz, has contributed to the decline in gold and silver prices. The dollar and US Treasury yields have extended their gains, making dollar-denominated bullion less attractive for investors using other currencies.

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Outlook: According to Ponmudi R, CEO of Enrich Money, precious metals are likely to remain under pressure in the coming week due to a stronger US dollar and mixed cues from ongoing geopolitical tensions in the Middle East. However, he advises a selective buy-on-dips strategy near strong support zones, as long-term macro fundamentals remain supportive.

Technical Analysis: On the technical front, COMEX gold has seen a sharp correction after retesting its earlier record-high resistance zone of $5,300–$5,500, and is currently trading in the range of $4,450–$4,520. COMEX Silver continues to trade within a subdued range of $62–$70 after a sharp correction from its earlier highs near the $93–$97 resistance zone.

Support and Resistance Zones: The $60–$65 zone acts as a critical demand base for silver prices, and a decisive breakdown below this region could accelerate weakness toward $50 or lower levels. On the upside, a sustained hold above this support may trigger a recovery toward $75–$80, with extended gains potentially reaching $85–$90.