Who is involved
Gold prices on the Multi Commodity Exchange (MCX) in India have experienced a dramatic shift, reflecting a broader trend of declining values in precious metals. Before this recent downturn, market analysts had anticipated a stable or slightly bullish trend for gold, with expectations of continued demand amid global uncertainties. However, the situation has changed drastically.
On March 23, 2026, the MCX gold rate opened at ₹1,40,158 per 10 grams, a significant drop of 3% from previous levels. This initial decline was just the beginning, as the price soon plummeted to a low of ₹1,33,352, marking a staggering decrease of ₹11,140, or 7.70%. This sharp decline is indicative of a larger trend, with gold prices crashing more than 10% in the preceding week alone.
The immediate effects of this price drop have been felt across the market, with MCX silver also suffering substantial losses. The silver price opened 4% lower at ₹2,17,702 per kg and subsequently crashed by 11.31% to reach ₹2,01,111 per kg, a decline of ₹25,661. Such volatility in both gold and silver prices has raised concerns among investors and traders alike.
As of 11:15 AM on the same day, MCX gold was trading lower by ₹10,896, or 7.54%, at ₹1,33,596 per 10 grams, while silver was down ₹24,117, or 10.63%, at ₹2,02,655 per kg. The cumulative effect of these declines has resulted in a 15% drop in MCX gold prices throughout March, with silver rates falling by an even more alarming 25% during the same period.
Experts attribute this sharp decline in gold prices to a combination of escalating geopolitical tensions, particularly the ongoing conflict involving the United States and Iran, and rising crude oil prices that contribute to broader inflationary pressures. The probability of a rate hike at the upcoming Federal Reserve meeting in June 2026 has also risen to approximately 22%, further influencing market sentiment.
Market analysts like Jigar Trivedi have noted that the MCX gold price may find support at levels around ₹1,33,000 to ₹1,30,000, while resistance is expected at ₹1,40,000 to ₹1,44,000. Ajay Kedia, another market expert, remarked that the overall trend for gold prices remains negative, advising investors to consider selling on any price rises from current levels.
This situation underscores the interconnectedness of global economic factors and their impact on commodity prices. As geopolitical tensions continue to escalate and inflationary pressures mount, the outlook for gold and silver remains uncertain. Investors are advised to remain vigilant and responsive to market changes as they unfold.
