Market Update: Gold and Silver Rates Unchanged Amid US Dollar Weakness

Key Figures:

• Spot gold rate: $5,008 per ounce
• Spot silver rate: $80.5 per ounce (down 0.21%)
• US Dollar: down 0.6% against a basket of currencies

Market Analysis: The gold and silver markets remained relatively unchanged on Tuesday, March 17, as investors assessed the impact of the conflict in the Middle East on oil supplies and the US dollar. The spot gold rate traded marginally higher at $5,008 per ounce, while spot silver prices declined by 0.21% to $80.5 per ounce.

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Market Drivers: The conflict involving the US, Israel, and Iran has now entered its third week, with Tehran launching attacks across the Persian Gulf on Monday. This has led to concerns over rising inflation and reduced expectations of an interest rate cut by the Federal Reserve. Traders now see almost no likelihood of a rate cut at this week's Fed meeting, which will be held on March 17-18.

Technical Outlook: According to Ponmudi R, CEO of Enrich Money, gold has entered a short-term corrective phase, but the broader bullish structure remains intact. Gold is currently trading within the $4,960–$5,040 support band and strong buying interest remains visible in the $4,950–$5,000 support zone. A break below this band could push prices toward the $4,850–$4,900 region.

Silver Prices Outlook: The recent corrective phase has pushed silver prices below key moving averages, but the broader bullish structure remains intact. Silver is currently trading around the $77–$82 range, with strong buying interest visible in the $70–$74 support zone. A sustained move above $88 could reignite bullish momentum toward $95–$100 and potentially retest previous highs.