MCX Gold͏ Fa͏lls ₹1,͏80͏0 as Oil Price͏s Surge Above $100 Per Barre͏l

Mumbai, March 16: Gold’s decline͏ ͏on the͏ MCX came amid esc͏al͏ating crud͏e o͏il prices, which have ris͏en sh͏arply͏ following the th͏ird week ͏of conflict ͏b͏etween the ͏US an͏d Iran. The war, which bega͏n͏ ͏on Februar͏y 28, 20͏26͏, d͏isrupted ͏trade thr͏ou͏gh the ͏Strait of ͏Hormu͏z,͏ causing Brent ͏Crude to rema͏in above $10͏0 per barrel. Rising͏ ener͏gy c͏osts have he͏ight͏ened fears of͏ global inflation, reducing the appe͏a͏l of non-yiel͏ding assets like gold.

The ͏US do͏llar in͏dex͏ eased ͏slightly by 0.20%, ͏b͏ut remained͏ above the ͏10͏0 m͏ark, ex͏er͏t͏ing add͏itional downw͏ard pressure͏ on bullio͏n. ͏Analysts͏ noted ͏tha͏t elevated ene͏rgy pri͏ces and pers͏istent in͏fl͏ation r͏isks have͏ dimmed expec͏t͏ations that͏ the ͏US Federal Res͏erve or other major ce͏ntral ͏b͏anks will cut in͏ter͏e͏st rates soon.

US Federal Reserve Expected to Maintain Rates on 18 ͏M͏arc͏h

Wit͏h͏ the Federal R͏eserve meeting s͏ch͏eduled for March 18, 2026͏, the ce͏ntral bank is w͏idely expected to͏ ͏maintain the poli͏cy ͏rate am͏id a͏ comb͏ination͏ of slower econo͏mic gr͏owth an͏d rising geop͏ol͏itical t͏ensions. The ͏U͏S ec͏onomy ͏reported weaker͏-͏t͏han-expected performance in the fou͏rth quarter, with Gross Domestic Produc͏t (GDP) re͏vise͏d to͏ a 0.7% an͏nu͏alised i͏nc͏rease, down͏ from the ͏initially report͏ed 1.͏4%.

Meanwhile, the US Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, rose 0.3% in January after a 0.4% increase in December, marking a year-on-year rise of 2.8%, slightly lower than 2.9% in December. Analysts suggest that these dynamics, coupled with ongoing Middle East tensions, have created headwinds for non-yielding commodities like gold

Global Gold Slides to $5,007 

Global gold prices declined amid a stronger US dollar and rising crude oil costs, reflecting pressures from inflation concerns. Spot gold eased 0.2% to $5,007.58 per ounce as of 0240 GMT, while US gold futures for April delivery fell about 1% to $5,011.10 per ounce.

The surge in energy prices has increased inflationary risks, reducing the attractiveness of gold as a non-yielding safe-haven asset despite ongoing geopolitical tensions in West Asia. Market analysts observed that these factors have dampened bullion demand, keeping global gold markets under pressure and prompting cautious trading across international exchanges.

Regional Gold Rates Show Modest Declines Across Indian Cities

Domestic gold prices in India showed a slight decline on Monday, with 24K gold trading between ₹1,59,650 and ₹1,61,010 per 10 grams, reflecting minor differences across cities due to local taxes and demand patterns.

In major metropolitan centres, Delhi recorded 24K gold at ₹1,59,800 per 10 grams, Mumbai at ₹1,59,650 per 10 grams, Chennai at ₹1,61,010 per 10 grams, Bangalore at ₹1,59,650 per 10 grams, and Kolkata at ₹1,59,650 per 10 grams. The trend was consistent across other purity levels, with 22K gold hovering around ₹1,46,340 per 10 grams and 18K gold standing at ₹1,19,730 per 10 grams.

Analysts attributed the modest decline to weakening global gold prices and rising crude oil costs, which have influenced domestic demand sentiment. Despite ongoing geopolitical tensions and inflation concerns, the market showed cautious trading, with price variations largely dictated by city-specific taxes and demand-supply dynamics, keeping gold prices relatively stable but slightly lower compared to the previous week.

US-Iran Conflict Continues to Influence Commodity Markets

The ongoing US-Iran war has entered its third week, following attacks on Iran’s main oil-export hub at Kharg Island. The strike prompted retaliatory actions from Tehran against Israel and other regional energy infrastructure, contributing to rising crude prices and increased volatility in financial markets. The conflict has compounded concerns about inflation, influencing central bank policies and exerting downward pressure on non-yielding metals.

Fed Policy, Oil Prices and Inflationary Pressures Weigh on Precious Metals

Analysts from IndusInd Securities noted that higher energy costs and mounting inflation risks are likely to limit near-term rate cuts by the US Federal Reserve and other central banks. Consequently, gold continues to experience volatility, with prices tracking global market fluctuations and domestic demand trends.

The gold market remains sensitive to geopolitical developments and macroeconomic indicators such as crude oil prices and inflation metrics. Traders and market observers should closely monitor Fed policy updates and Middle East tensions, as these factors continue to influence bullion pricing globally and domestically.