Precious Metals Report

Key Developments:

• Gold and silver prices plummeted to multi-week lows on the Multi Commodity Exchange (MCX) on Thursday evening.
• The April gold futures contract fell by ₹8,810 per 10 grams to ₹1,44,215 per 10 grams, marking the lowest level since early February.
• Silver prices dropped by ₹25,500 per kilogram to ₹2,22,234, marking the lowest level since late December.

Market Impact:

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• Gold prices have declined by 11% in March so far and have reduced year-to-date returns to 6.60%.
• Silver prices have fallen by 21% in March, putting it on track for a second consecutive monthly decline.
• The overall short-term trend in gold remains weak to volatile, with resistance shifting lower towards ₹1,50,000 and key support seen in the ₹1,44,000–₹1,42,000 zone.

Macro Factors:

• Inflation risks, stronger dollar, and delayed rate cuts are pressuring gold and silver prices.
• The ongoing US-Iran war has pushed oil and gas prices to multi-year highs, fueling inflationary risks.
• The Federal Reserve held interest rates steady at its latest meeting and projected just one cut this year.
• The stronger dollar has made commodity prices more expensive for holders of other currencies, limiting demand for gold and silver.

COMEX Performance:

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• The April gold delivery contract on COMEX fell by $304 per troy ounce to the day's low of $4,580, extending losses to a second straight session.
• Silver prices plunged by $10.35 per troy ounce to $67.23, marking the lowest level since February 6.