Silver Prices Plummet 6% Amid US-Iran Tensions, Sparking Investor Jitters

Silver and Gold Prices Plummet Amid Geopolitical Tensions

Market Overview

On March 23, MCX silver prices declined 6% or ₹13,606 to ₹2,13,166 per kg, while MCX gold slipped around 5% or ₹7,115 to ₹1,37,377 per 10 gram, tracking weakness in global markets. In the international market, spot silver fell 3.2% to $65.61 per ounce, while spot gold dropped 2.5% to $4,372.86 per ounce.

Global Market Impact

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The recent decline in gold and silver is being driven by a mix of geopolitical tensions, rising oil prices, and shifting interest rate expectations. Crude oil prices have surged above $110 per barrel, raising concerns about inflation globally. Higher inflation typically forces central banks, including the U.S. Federal Reserve, to delay interest rate cuts or even keep rates higher for longer. This creates a negative environment for gold and silver, as they are non-yielding assets.

Geopolitical Developments

Escalating conflict in the Middle East has added another layer of uncertainty. Iran warned that it could completely shut a crucial waterway and target energy, IT, and desalination infrastructure if its facilities are attacked. The US military is deploying thousands of additional marines and sailors to the Middle East, further intensifying concerns.

Silver Price Outlook

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Silver prices may be under pressure in the near term, but the broader structure of the market still reflects a cautiously optimistic outlook. The recent correction has pushed prices into a consolidation phase, with key support and resistance levels now becoming critical for the next directional move. If silver manages to sustain above the $65 support zone, it could pave the way for a recovery toward the $75-80 range.

Technical Analysis

From a technical perspective, the $60-65 zone remains a crucial demand area. A decisive breakdown below this level could accelerate the downside, potentially dragging prices toward $50 or even lower levels. On the upside, extended gains could push prices further higher toward the $85-90 zone.