Gold Rates & Silver Rates Today Rally After 2-Days Of Crash: Why MCX Gold & Silver Prices Jumped On March 20?

Gold rates and silver rates in India climbed sharply on Friday, March 20th, as crude oil prices plunged. 24-carat gold is up by Rs 6,500 in 100 grams after crashing by a whopping Rs 78,000 for two consecutive days. Similarly, MCX gold rebounded to trade near Rs 1.48 lakh mark and MCX silver outperformed with over 3% gains. Also, spot gold and spot silver zoomed over 1.5% each in the early hours of the trading session.

Gold Rates In India:

24 carat gold price climbed by RS 6,500 to Rs 15,09,300 per 100 grams, and was up by Rs 650 to Rs 1,50,930 per 10 grams. This performance comes after 10 grams and 100 grams gold price crashed by Rs 7,140 and Rs 71,400 on March 19th. Prior to this, 10 grams and 100 grams gold price were down by Rs 660 in 10 grams and Rs 6,600 in 100 grams.

From March 18th to 19th, 24 carat gold nosedived by Rs 7,800 in 10 grams and Rs 78,000 in 100 grams.

MCX Gold Price + MCX Silver Price Today:

At the time of writing, MCX gold price with April 2026 expiry, surged by over 2% or Rs 2,966 to trade at Rs 1,47,920 per 10 grams which is closer to its intraday high of Rs 1,48,302 per 10 grams.

Meanwhile, MCX silver price beats gold with nearly 3% gains or Rs 6,595 upside to trade at Rs 2,38,055 per 1Kg. The silver with May 2026 expiry, has touched an intraday high of Rs 2.40 lakh mark.

Spot Gold Price + Spot Silver Price

Spot gold gained by nearly 2% to trade above $4,725 per ounce, while spot silver surged by 1.5% to trade near $74 per ounce. The bullion has halted its two-consecutive days selling pressure.

Why Gold & Silver Prices Jump Today?

One of the key reason is the crude oil prices which have corrected sharply, however, oil is still at multi-year high. US WTI crude oil futures dropped by 2% to trade below $94 per barrel and Brent Crude slipped by 1.5% to trade around $107 per barrel.

However, gains are limited due to firmness of dollar which stayed near 99 mark.

Despite the latest rise in precious metals, they are still on the path to record one of their weakest weak. The reason why precious metals are unable to hedge returns at a time where Middle East war of US-Israel vs Iran is intense, gruesome and threatens to impact global economies dangerously --- is the surge in energy prices due to this west Asia conflict.

Higher energy prices have pushed inflationary concerns and dampened the possibility of rate cut from US Federal Reserves in 2026. Earlier this week, FOMC said that they will not cut rates until inflation shows signs of cooling, however, they do predict one rate cut later in the year, which is lower than the two rate cuts prediction. Following the inflation risk, investors are rotating between dollar and treasuries as Fed announced hawkish policy on March 18th.

The energy-driven shock forced traders to reassess the policy outlook after a wave of hawkish signals from major central banks. The Fed kept rates unchanged, signaling no rate cuts until inflation clearly eases. At the same time, the ECB, BOJ, and BOE also left rates steady but struck more hawkish tones, indicating a bias toward tighter policy. Markets have now pushed back expectations for Fed rate cuts to 2027 and are pricing in two rate hikes each from the ECB and BOE this year, further weighing on gold's appeal, as per Trading Economics.

Gold & Silver Prices Outlook:

Explaining why precious metals are under pressure, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said that the fall is primarily driven by the US Fed's hawkish stance, which continued inflation concerns due to rising crude oil prices and ongoing geopolitical tensions involving Iran.

He added, recent data indicates gold has slipped to one-month lows near $4710, pressured by a stronger dollar and higher bond yields, as markets price in a "higher-for-longer" interest rate scenario.

Despite geopolitical tensions typically supporting safe-haven demand, Trivedi said, "the current environment is dominated by inflation-led policy tightening expectations, which is negative for non-yielding assets like gold. Rising oil prices are further reinforcing inflation risks, reducing the likelihood of near-term rate cuts."

Technically, he added, "On MCX, gold remains technically weak, with resistance now shifting lower towards ₹150000, while key support is seen in the ₹144000-₹142000 zone. The overall short-term trend remains weak to volatile, and price action will continue to react sharply to developments in interest rate expectations and geopolitical cues."

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