Gol͏d Price F͏alls B͏elow ₹1͏.5͏2 Lak͏h Amid Fed Policy ͏Pause A͏n͏d Middle ͏East Tensions

Mumbai, Mar͏ch͏ 19: ͏Gold prices in͏ India declined o͏n͏ Thurs͏day ͏as do͏me͏s͏tic ma͏r͏kets ͏react͏ed to the U.S.͏ Federal Reserve’s͏ d͏ecision to ͏ma͏intain͏ benchmark interest rate͏s and͏ ong͏oing geopolitical te͏nsions in ͏t͏he Mid͏dle East͏. On the͏ Multi Commod͏ity Exchange (MCX), 2͏4-car͏at gold futures ͏for April 2026 ͏fe͏l͏l͏ by ₹1,313 (0.86%), closing a͏t ₹1,51,712͏ per 10 grams, while silv͏er futures for May 2026 dropped ͏by ₹3͏,852 (1.5%) ͏to ₹͏2,44,342 per kilog͏ram.

MCX G͏old ͏Fut͏ures Decli͏ne After Fed͏ Mainta͏insIn͏terest Rates

Domestic͏ 24-car͏a͏t gol͏d opened ͏the MCX t͏radi͏ng sessi͏on lower, hovering around ₹1,52,1͏5͏0 pe͏r 10 gram͏s, down 0.57% from Wednesday’s͏ close. ͏The decline f͏ollowed the U.S. Federal Reserve͏’s decision o͏n ͏March 18 to maintain its ͏benchmark federal funds rat͏e at 3.5–3.75%. The ͏cent͏ral b͏ank h͏ad͏ ͏pre͏viously redu͏ced͏ rates three ti͏mes͏ in Se͏p͏tember, Octobe͏r, and ͏Dec͏ember 2025. Analysts noted that the Fed’s cau͏tious stanc͏e͏ limit͏ed expectat͏ions for nea͏r͏-ter͏m rate cuts, wh͏ich ͏typically su͏pport non-yielding assets such as͏ gold.

Domestic Gold Prices Show Minor Variations Across Major Cities

In the domestic market, 24-carat gold traded at ₹1,57,740 per 10 grams in Mumbai, Kolkata, Bengaluru, and Hyderabad, while Chennai recorded slightly higher rates of ₹1,58,940 per 10 grams, and Delhi reported ₹1,57,890 per 10 grams.

For 22-carat gold, prices held at ₹1,44,590 per 10 grams in Mumbai, Kolkata, Bengaluru, and Hyderabad, with Chennai slightly higher at ₹1,45,690 per 10 grams and Delhi at ₹1,44,740 per 10 grams. The 24-carat gold price declined by ₹10 in early trade, whereas silver fell by ₹100 per kilogram, reflecting cautious trading amid global uncertainty.

International Spot Gold Shows Slight Recovery Amid Strong Dollar

Internationally, spot gold rebounded marginally to $4,856.82 per ounce, up 0.4% from an overnight low of $4,836 per ounce, ending a six-day losing streak, the longest since late 2024. Spot silver advanced 0.5% to $75.74 per ounce, while platinum and palladium rose 0.9% each to $2,040.46 and $1,488.75 per ounce, respectively. Despite this, domestic prices remained under pressure due to a stronger U.S. dollar and rising import costs, highlighting the divergence between global and local bullion markets.

Rising Crude Oil Prices and Middle East Conflict Keep Gold in Focus

The ongoing US-Iran conflict, now in its third week, continues to impact global commodities. US-Israeli strikes on Iran’s South Pars gas field, followed by Iran’s retaliatory missile attacks on a Qatari LNG facility, disrupted nearly a quarter of global oil supply. Elevated crude oil prices amid these tensions have heightened safe-haven demand for gold internationally, yet MCX gold prices faced downward pressure due to local market conditions, including a stronger rupee and limited physical demand.

Gold Corrects After Six-Day Losing Streak in International Markets

US spot gold declined 1.22% to $4,836 per ounce, while spot silver fell more than 2.25% to $75.75 per ounce. On the MCX, gold hovered around ₹155,000 per 10 grams, with silver trading at ₹250,000 per kilogram. Cumulative losses in March 2026 amount to nearly 4% for gold and 16% for silver, illustrating the impact of Fed policy and oil-driven inflation concerns on precious metals.

Analysts attributed the recent decline to cautious investor sentiment ahead of the Fed announcement and rising Treasury yields, which make non-yielding assets like gold comparatively less attractive.

Fed Policy Limits Immediate Upside for Gold

The U.S. Federal Reserve’s decision to maintain its key interest rate after three consecutive cuts, along with the indication of only one potential rate cut later in the year, limited immediate gains for gold. Fed Chair Jerome Powell emphasised that further easing would depend on more definitive progress in controlling inflation. Analysts noted that higher Treasury yields reduce the appeal of gold and silver, capping upside despite ongoing geopolitical tensions in the Middle East.

Domestic MCX Futures Continue Lower Amid Dollar Strength

Domestic MCX gold futures opened lower at ₹1,52,150 per 10 grams, while silver futures traded at ₹2,45,197 per kilogram, down 1.21%. Earlier pre-market trades recorded 24-carat gold at ₹1,51,930 per 10 grams, and silver at ₹2,44,150 per kilogram, indicating cautious sentiment ahead of Fed commentary. The combination of rising oil prices, a strong U.S. dollar, and subdued local demand contributed to the continued downward pressure on domestic bullion rates.

City-Wise Gold Prices Reflect Regional Variations

In Mumbai, Kolkata, Bengaluru, and Hyderabad, 24-carat gold traded at ₹1,57,740 per 10 grams, while 22-carat gold was ₹1,44,590 per 10 grams. Chennai recorded slightly higher rates for 24-carat and 22-carat gold at ₹1,58,940 and ₹1,45,690 per 10 grams respectively, while Delhi reported ₹1,57,890 per 10 grams for 24-carat and ₹1,44,740 per 10 grams for 22-carat gold. These regional differences reflect local demand, taxes, and supply dynamics that influence pricing in each city.

Historical Context Shows Slower Momentum For Gold

Gold has traditionally acted as a hedge against inflation and geopolitical uncertainty. While year-to-date gains remain around 12% in 2026, momentum has slowed due to weaker domestic demand and limited Fed rate cuts. Silver has experienced greater volatility, with a 16% decline in March alone, underlining the sensitivity of precious metals to macroeconomic and geopolitical developments, as well as currency fluctuations in India.

Gold prices in India continue to reflect the combined influence of U.S. monetary policy, Middle East tensions, crude oil prices, and domestic market factors such as import costs and city-wise demand. Current price trends indicate that while international spot gold shows intermittent recovery, domestic MCX rates and city-specific values are susceptible to short-term volatility, demonstrating the broader impact of global triggers on Indian bullion markets.