Gold and Silver Prices Experience Downward Pressure

Market Overview

On Tuesday, March 24, gold and silver prices experienced a significant decline, with the COMEX gold rate falling 1.51% to $4,370 per ounce and the COMEX silver prices trading 3.30% lower at $67 per ounce.

Macro Economic Factors

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The decline in gold and silver prices can be attributed to the de-escalation of tensions in the Middle East conflict. US President Donald Trump announced a five-day delay to previously threatened strikes on Iran's power infrastructure, leading to a temporary pause in the conflict. However, uncertainty persists around the outcome of any negotiations and the safe passage of ships through the Strait of Hormuz.

Inflation Risks Remain Elevated

The ongoing damage to energy infrastructure and the potential for future conflicts will continue to exert upward pressure on inflation, reinforcing expectations of potential rate hikes by the US Federal Reserve and other central banks. This is a negative factor for non-yielding assets like gold.

Gold and Silver Prices Outlook

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According to Jateen Trivedi, VP Research Analyst at LKP Securities, the current macro setup, with a strong dollar and higher yields, is exerting downward pressure on gold prices. However, if there is any meaningful de-escalation in geopolitical tensions and clarity on rate cuts, gold could witness a sharp recovery.

Technical Outlook

Ponmudi R, CEO of Enrich Money, notes that the COMEX Gold has opened cautiously firm but continues to trade below key short-term moving averages, hovering within the 4,367–4,320 support zone. The broader trend remains bearish, but ongoing geopolitical tensions are providing intermittent safe-haven support.

Key Resistance and Support Levels

• Gold: $4,400–$4,500 (critical resistance band), $4,650 (potential breakout level)
• Silver: $68–$70 (strong resistance zone), $65 (potential support level)

Conclusion

Gold and silver prices continue to experience downward pressure due to the current macro economic factors. However, if there is any meaningful de-escalation in geopolitical tensions and clarity on rate cuts, gold could witness a sharp recovery.