“MCX gold price has fallen 15% in March so far, while MCX silver rate has dropped 25% so far in this month,” noted Jigar Trivedi, a market analyst, as the trading day began with alarming figures.
The MCX gold rate opened 3% lower at ₹1,40,158 per 10 grams, but the situation worsened as the price hit a low of ₹1,33,352, slipping as much as ₹11,140, or 7.70%. This sharp decline has left investors reeling, reflecting a broader trend that has seen gold prices crash more than 10% last week alone.
In parallel, the MCX silver price for May futures contracts opened 4% lower at ₹2,17,702 per kg, before crashing further to ₹2,01,111 per kg, marking a staggering drop of 11.31% or ₹25,661.
As of 11:15 AM, the MCX gold price was trading lower by ₹10,896, or 7.54%, at ₹1,33,596 per 10 grams. Meanwhile, the MCX silver price was down by ₹24,117, or 10.63%, at ₹2,02,655 per kg.
The backdrop to this financial turmoil is the escalating US-Iran war, which has intensified inflation concerns as crude oil prices remain elevated. This geopolitical tension has created a ripple effect across various markets, leading to a significant downturn in precious metals.
Ajay Kedia, another market expert, commented, “The overall trend for gold prices remains negative, and investors can sell on rise from these levels.” This sentiment underscores the prevailing uncertainty and caution among traders as they navigate this volatile landscape.
Spot gold prices have also taken a hit, falling 2.5% to $4,372.86 per ounce, further illustrating the widespread impact of current events on the gold market.
As the day progresses, investors are left to ponder the implications of these dramatic shifts in pricing, with many looking for signs of stabilization or recovery.
Details remain unconfirmed regarding potential market interventions or policy changes that could influence future pricing trends.
With the market in flux, all eyes will be on upcoming developments that may either exacerbate or alleviate the current situation.
