Gold & Silver Rates Gets Beaten! Why MCX Gold & Silver Price Continue To Fall Even In Geopolitical Risks?

Gold rates and silver rates in India have continued to witness a relentless fall in March 2026. So far, the precious metals are down by 9% to 10% in the month. On March 16, MCX gold and silver prices are struggling to hold key pivotal levels of Rs 1.55 lakh and Rs 2.50 lakh, extending their losses for the third week. At the time of writing, MCX gold and silver are down by 2% to 4% on Monday alone.

This is a surprising movement in gold and silver, which are generally seen as safe haven assets amidst geopolitical crises. Currently, the situation in the Middle East is far from over or calming down, escalating economic uncertainties globally. Yet, gold and silver are failing to hedge returns in chaos. Why?

MCX Gold Price:

MCX gold price with April 2026 expiry has nosedived to hit an intraday low of Rs 1,55,222 per 10 grams in the second half session of Monday. At the time of writing, MCX gold plunged by Rs 2,755 or 1.74% to trade at Rs 1,55,711 per 10 grams which is near the intraday low.

MCX Silver Price:

Meanwhile, MCX silver dropped to hit an intraday low of Rs 2,50,746 per 1Kg. At the time of writing, silver underperformed gold with 3% decline or correction of Rs 7,435 to trade at Rs 2,52,000 per 1Kg.

Gold and silver at MCX turned bearish due to weak global cues.

Why Gold & Silver Prices Are Falling?

Explaining in depth, Kaynat Chainwala, AVP Commodity Research at Kotak Securities said, Comex gold and silver extended last week's losses, slipping to $4,970/oz and $78.5/oz respectively, as elevated crude oil prices dampened expectations of near-term interest rate cuts. Supply chain disruptions stemming from the Iran conflict are increasingly viewed as re-inflationary, prompting markets to scale back expectations of policy easing, with some participants beginning to tentatively price in the possibility of tighter monetary policy.

This shift has helped the U.S. dollar stabilize above the 100 level and pushed Treasury yields higher, creating headwinds for non-yielding assets such as precious metals. Last week, COMEX gold declined 2% while COMEX silver dropped 3.5%, marking a second consecutive weekly loss for both metals, pressured by a stronger dollar and rising yields, while broader market volatility triggered liquidity stress and forced liquidation in bullion positions.

Also, data from Trading Economics pointed out that spot gold fell Monday after falling for two straight weeks, as oil remained volatile after the US attacked Iran's main oil-export hub of Kharg Island over the weekend, heightening global supply risks. The strike prompted retaliatory attacks from Tehran on Israel and energy infrastructure across other Arab countries. The US-Israeli war on Iran has now entered its third week with no clear resolution in sight, rattling financial markets. Higher energy prices and mounting inflationary pressures have lowered expectations that the US Federal Reserve and other major central banks will cut interest rates, posing a headwind for non-yielding precious metals. The Fed is widely expected to hold its policy rate steady this week, while central banks in the Eurozone, the UK, Japan, Switzerland, Australia, Canada, China, Brazil, and Russia are also set to decide on monetary policy.

Will Gold & Silver Prices Continue To Fall?

According to Chainwala, looking ahead, precious metals may remain soft in the near term with sharp moves in either direction unlikely in the absence of a significant shift in the geopolitical or policy outlook. Traders eye the upcoming FOMC policy meeting for updated economic projections for clues on the policy outlook as the Fed is widely expected to maintain status quo on rates.

On the data front, U.S. PPI and weekly jobless claims will be in focus for signals on the health of the broader economy. Having said that, with no signs of de-escalation in the ongoing U.S.-Iran standoff, geopolitical risk remains the dominant market driver in the near term.

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