Gold rates and silver rates in India and globally witnessed sharp selling pressure throughout the week. After the closing bell on March 14th, MCX gold closed below Rs 1.60 lakh mark and MCX silver dropped by 1%. Meanwhile, spot gold also fell by over 1% to struggle to maintain $5,050 per ounce mark. Spot silver crashed by 4% to hold around $80.5 per ounce.
The major reason behind the downfall in precious metals is the strengthening in the dollar index as the rate cut expectations from the US Federal Reserve get duller.

The dollar strengthened as investors sought liquidity following the announcement of the largest wave of strikes yet against Iranian targets and the effective closure of the Strait of Hormuz. While geopolitical volatility typically drives bullion demand, the threat of persistent inflation from crude oil prices exceeding $100 per barrel has shifted the focus toward yield bearing assets, as per Trading Economics.
Also, participants have broadly trimmed their expectations of probable rate cuts in 2026 owing to surge in energy costs which is expected to impact price stability. Accordingly, rise in dollar and bond yields has forced investors to pullback or sell gold to cover margin calls and raise cash. Hence, precious metals recorded their second consecutive weekly decline despite the ongoing Middle East conflict.
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