Gold Prices Plunge 2.43%, Silver Drops 6% as Bullion Markets Experience Selloffs

Gold and Silver Prices Decline Amid Geopolitical Tensions and Rising Inflation Concerns

March 26, 2024

The prices of gold and silver declined on March 26 due to prevailing macroeconomic pressures and geopolitical tensions. On the Multi Commodity Exchange (MCX), the domestic bullion futures price of gold opened at Rs 1,40,830, down 2.43% from the previous close. Silver prices edged 5.88% lower to Rs 2,24,605 per kilogram as of 17:24 IST.

Global Spot Prices

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

Gold slipped 2.76% near $4,427 per ounce, and silver fell 6.99% to $67.56 per ounce. The decline in prices can be attributed to the strengthening US dollar, which is making gold and silver more expensive for international buyers.

Market Analysis

Analysts attribute the fall in gold and silver prices to rising inflation concerns, driving interest rates higher and reducing the appeal of non-yielding assets. Continued selling by Foreign Portfolio Investors (FPIs) has contributed to the rupee's weakness, closing at a record low of 94.05 to the dollar yesterday. Ross Maxwell, Global Strategy Operations Lead at VT Markets, advises investors to closely watch central bank policy signals, particularly the Fed's movements in bond yields and the direction of the USD. Inflation trends and energy prices will be key indicators of near-term price direction.