Gold, silver tumble to multi-week lows as West Asia tensions rattle markets. Check rates here
Gold and silver prices plunge to multi-week lows amid rising West Asia tensions, higher oil prices, and fading hopes of global rate cuts
Gold crashes to February lows
Gold prices witnessed a sharp fall in Thursday (March 19) evening trade, hitting their lowest level since early February on MCX. The April futures contract dropped significantly, reflecting strong selling pressure. Despite ongoing geopolitical tensions, the precious metal failed to hold its ground, surprising investors who typically view gold as a safe-haven asset during uncertain global situations.
Monthly losses deepen for gold
The yellow metal has declined nearly 11% so far in March, sharply eroding its recent gains. This correction has also reduced gold’s year-to-date returns to around 6.6%. Analysts say the fall is largely driven by shifting expectations around interest rates and persistent inflation concerns, which continue to weigh heavily on investor sentiment toward bullion markets.
Retail gold prices slip in India
The yellow metal has declined nearly 11% so far in March, sharply eroding its recent gains. This correction has also reduced gold’s year-to-date returns to around 6.6%. Analysts say the fall is largely driven by shifting expectations around interest rates and persistent inflation concerns, which continue to weigh heavily on investor sentiment toward bullion markets.
Silver takes a bigger hit
Silver prices recorded an even steeper fall compared to gold, dropping sharply to their lowest level since late December. The metal’s higher volatility made it more vulnerable to selling pressure. With a sharp decline in recent sessions, silver has struggled to find support, reflecting weaker investor confidence and broader concerns across the commodities market.
Oil surge adds pressure
Rising crude oil prices have added to the pressure on precious metals. Escalating tensions in West Asia, particularly between Iran and Israel, have pushed energy prices higher. This surge fuels inflation worries globally, which in turn reduces the likelihood of interest rate cuts by major central banks, a key factor that typically supports gold and silver prices.
Safe-haven appeal weakens
Despite geopolitical instability, gold’s safe-haven appeal appears to be weakening in the current environment. Market experts compare this trend to 2022, when similar global tensions led to volatile movements. Although price swings have moderated slightly, ongoing uncertainty and macroeconomic pressures continue to keep investors cautious about entering or increasing exposure to precious metals.
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