Gold and Silver Price Fall
Gold Prices Fall ₹8,800 Amid Middle East Conflict: Gold and silver prices saw a sharp fall on Thursday evening on the Multi Commodity Exchange, reaching multi-week lows. The decline comes amid global economic uncertainty and ongoing tensions in the Middle East.
Gold futures for April delivery dropped by ₹8,810 to ₹1,44,215 per 10 grams, the lowest level since early February. So far in March, gold prices have fallen by around 11%, reducing its yearly return to about 6.60%.
Silver prices declined even more sharply. It fell by ₹25,500 to ₹2,22,234 per kilogram, marking its lowest level since December. Silver has dropped nearly 21% in March, continuing its downward trend for the second month.
Experts from LKP Securities said that gold remains weak in the short term. Resistance is seen near ₹1,50,000, while support lies between ₹1,44,000 and ₹1,42,000. Market volatility is expected to continue.
The main reason for the fall is the stance of the Federal Reserve on interest rates. Fed Chair Jerome Powell indicated that rate cuts are unlikely soon due to inflation concerns. Higher interest rates reduce the appeal of gold, as it does not provide interest returns.
At the same time, investors are moving towards the US dollar, which is considered a safe investment during uncertainty. A stronger dollar reduces demand for gold and silver.
In the international market, prices also declined on COMEX. Gold fell by $304 to $4,580 per ounce, while silver dropped to $67.23 per ounce. Overall, precious metal prices remain under pressure due to high interest rates, a strong dollar, and inflation concerns.
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