Mega Gold Price Crash Alert! 24K Sinks Rs 1.36 Lakh/100 Gm In Week; Silver Sees Losses | March 23-27 Outlook

Gold prices in India have witnessed a sharp correction over the past week, pressured by escalating geopolitical tensions amid the Iran-US conflict and a surge in crude oil prices. The ongoing West Asia crisis, global energy supply concerns, and diminishing hopes of further US Federal Reserve rate cuts have dragged 24-karat gold prices down by nearly Rs 1.36 lakh per 100 grams during the period. The prices of 22 karat and 18 karat gold have also declined significantly. Likewise, Silver rates in India have also mirrored the trend, registering a steep decline over the past week.

The recent decline in gold and silver prices is likely to encourage retail jewellery buyers to execute their long-pending plans to purchase jewellery. As people enjoy the weekend and may plan to step out for shopping, here are the latest gold and silver rates in India on Sunday, March 22.

Gold Rate in India

The price of 24 karat gold in India stood at Rs 14,597 per gram on Sunday, March 22. The rate of 22 karat gold in India was fixed at Rs 13,380 per gram. Likewise, 18 karat gold in India was priced at Rs 10,948 per gram on Sunday, March 22. As per Goodreturns data, 24 karat gold rate in India has crashed by Rs 1369 per gram from Rs 15,966 recorded on March 15 to Rs 14597 recorded on March 22. Hence, per 100 grams of 24 karat gold became cheaper by Rs 1,36,900, from Rs 14.59,700 to Rs 13.23,900, during the period.

The international gold rate today declined 2% to $4,570 per ounce on Friday, March 20, as per Trading Economics.

Silver Rate in India Today

Silver rate in India remained stable on Sunday, March 22. The price of silver stood at Rs 245 per gram and to Rs 2,45,000 per kilogram on March 22. Just like gold, silver prices have also seen a massive decline in the last one week. Silver price has declined from Rs 2.75 lakh per kilogram on March 15 to Rs 2.45 lakh per kilogram on March 22, as per Goodreturns data.

Why is Gold Price Falling?

Gold's trajectory since the beginning of the Iran-US war on February 28 stands in stark contrast to the widely accepted notion that gold is a safe-haven asset. The gold price has seen a sharp decline over the past two weeks. As per Brickworks ratings report released on Friday, domestic gold prices saw a sharp decline due to "persistent selling pressure as investors are moving towards liquid currencies such as Dollars".

The US Federal Reserve meeting, which concluded on March 18, decided to keep rates steady at 3.5% to 3.75%. The Fed rate also diminished the possibility of any further rate cuts in the coming months. Additionally, crude oil prices also surged to $100 per barrel mark last week amid supply concerns due to Iran-US war.

"Higher for longer rates and expensive oil typically squeeze liquidity in emerging markets, potentially destabilising global trade. If the war persists, the Fed optimistic roadmap might be the first thing to break," explained Justin Khoo, Senior Market Analyst - APAC, VT Markets.

Gold Price Outlook

Gold prices are likely to remain volatile in the coming week, between March 23 and March 27. Experts believe that there is unlikely to be any major upswing in the precious metal as investors continue to remain cautious due to Iran-US war and higher-for-longer Fed rates.

"While the Fed maintains its long-term inflation target of 2%, markets now expect policymakers to remain cautious, limiting upside in gold despite ongoing safe-haven demand," stated Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd.

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