Gold, Silver Rate Today (Mar. 16) – Highlights: Gold falls below Rs 1.56 lakh, silver 1.06% down amid firmer dollar; what should investors watch for?

Gold and silver remained under pressure in evening trade on March 16, reflecting weakness in global bullion markets. On the MCX, gold was trading at Rs 1,55,874 per 10 grams, down Rs 2,592 from the previous close of Rs 1,58,466 at around 17:45 IST. Silver declined Rs 7,785 to Rs 2,51,650 per kg, compared with Rs 2,59,435 in the previous session. In international markets, Comex gold was at $5,003.70 per ounce, down 1.15%, while Comex silver slipped 2.77% to $79.090 per ounce, indicating continued selling pressure across precious metals.

Precious metals are currently in a “yield-driven” consolidation phase, according to Bhavik Bhagwanji Shah, Analyst – Metals & Mining at Choice Institutional Equities. Shah said rising US Treasury yields, with the 10-year yield near 4.3%, are increasing the opportunity cost of holding non-yielding assets like gold and silver, prompting investors to shift toward debt instruments. At the same time, strength in the US Dollar Index (DXY)—trading around 104–105 amid the Federal Reserve’s higher-for-longer rate outlook—has added pressure. A stronger dollar makes precious metals more expensive for global buyers, limiting near-term upside.

Gold and silver extended losses in late afternoon trade on March 16, mirroring weakness in global bullion markets. On the MCX at around 16:13 IST, gold declined Rs 3,263 to Rs 1,55,203 per 10 grams, compared with the previous close of Rs 1,58,466. Silver saw sharper selling, falling Rs 11,323 to Rs 2,48,112 per kg, down from Rs 2,59,435 earlier. In global markets, Comex gold traded at $4,991.20 per ounce, down 1.39%, while Comex silver dropped 4.12% to $77.990 per ounce, reflecting broad pressure across precious metals.

According to Augmont, silver has stabilised around the $80 mark, which is emerging as an important support level. The metal is navigating mixed forces as geopolitical risks support safe-haven demand but a strong U.S. dollar and elevated oil prices limit broader gains. Escalating tensions involving United States and Iran have pushed crude oil above $100, raising inflation concerns and reducing expectations for rate cuts by the Federal Reserve. These macro pressures have kept precious metals largely range-bound despite ongoing geopolitical uncertainty.

Gold and silver witnessed sharp losses in afternoon trade on March 16, tracking weakness in global bullion markets. On the MCX, gold fell Rs 2,900 or 1.83% to Rs 1,55,566 per 10 grams, compared with the previous close of Rs 1,58,466 at around 14:32 IST. Silver declined Rs 7,795 or 3% to Rs 2,51,640 per kg, down from Rs 2,59,435 in the previous session. In international markets, Comex gold slipped to $4,999.10 per ounce, down 1.24%, while Comex silver dropped 2.36% to $79.420 per ounce, reflecting broad pressure across precious metals.

According to a report by Augmont published on March 16, gold is holding near a key support level around $5,000 amid volatile global conditions. However, a stronger U.S. dollar and rising Treasury yields have limited the metal’s upside despite geopolitical tensions in the Middle East. The dollar has strengthened as investors prefer dollar-denominated assets during uncertainty, particularly following the escalation involving United States and Iran near the Strait of Hormuz. Slower economic growth and delayed rate-cut expectations from the Federal Reserve are also weighing on bullion sentiment.

The India Bullion & Jewellers Association (IBJA) set gold (999) at Rs 1,56,436 per 10 grams in the March 16 morning session, down from Rs 1,58,555 on March 13 (Friday). Gold (995) was fixed at Rs 1,55,810 per 10 grams, compared with Rs 1,57,920 in the previous session. Silver (999) was quoted at Rs 2,52,793 per kg, lower than Rs 2,59,951 on Friday. IBJA benchmark rates are derived from prices collected from leading bullion dealers across the country and are used as a key reference for India’s physical bullion and jewellery market.

Despite rising geopolitical risks, a stronger US dollar is capping the upside in gold and silver prices. Gold futures on MCX traded 1.27 percent lower at Rs 1,56,737 per 10 grams and silver declined 1.86 percent to Rs 2,55,203, from their previous close as of 12:27 am IST). The Augmont Bullion estimates that gold could regain upward momentum if prices manage to stabilize and rebound from current levels, and potentially move toward $5,200 (Rs 1.64 lakh), followed by $5,250 (Rs 1.65 lakh) in the near term. If buying interest on silver returns and prices recover from current levels, the white metal may advance toward $90 (Rs 2.80 lakh) and subsequently test $95 (Rs 2.90 lakh).

According to Manav Modi, Commodities Analyst at MOFSL, market expectations for a rate reduction at the March meeting have now largely faded. "The probability of rate cuts later this year has dropped to 80 percent. Market participants' positioning also reflected increasing caution, with gold-backed ETF holdings declining by nearly 31 tonnes so far this month as participants trimmed exposure amid rising uncertainty. Silver prices also followed a similar trajectory, slipping to around $80 alongside broader weakness in precious metals. Pressure in bullion is majorly because markets remained focused on the inflationary risks stemming from the ongoing US-Israel conflict with Iran."

Bullion is trading below its opening prices as the Iran war and rising energy prices strengthen the US dollar amid heightened concerns that the US Fed may delay interest rate cuts. Gold futures on MCX traded at Rs 1,56,737 per 10 grams and silver declined to Rs 2,55,203, as of 11:25 am IST. Manav Modi, Commodities Analyst at MOFSL, said, "Overall, gold prices have started taking some breather since the conflict began as concerns about prolonged inflation and higher-for-longer interest rates overshadowed safe-haven demand, with market attention this week turning to key central bank decisions, including the Fed, BOJ, ECB, BOE, and China’s LPR announcements."

Precious metal prices remain low as Iran-linked conflict disrupts global oil consumption and continues to support the US dollar, which reached its peak above 92.70 against the rupee on March 16. The international spot gold price on Comex fell below $5,020 per ounce, and silver struggled to hold $81 per ounce in early trade on Monday. The domestic MCX futures gold dropped 1.27% to Rs 1,56,511 per 10 grams, and silver was nearly 2% low at Rs 2,54,265 per kilogram (10:28 am IST). Bullion also failed to gain momentum as uncertainty hovers over the Fed's policy outlook.

MCX gold futures dropped Rs 1,339 from the opening levels to trade at Rs 1,57,188 per 10 grams, down 0.84 percent from the previous close. Silver futures also declined by Rs 4,089, falling 1.58 percent to Rs 2,55,346 per kilogram as of 9:30 am.

Precious metals' prices opened marginally lower on early Monday trade on MCX amid heightened tensions over the Iran war, which continues to block one-fourth of the world's oil consumption, boosting the US dollar. The domestic futures gold traded 0.95 percent lower at Rs 1,57,014 per 10 grams, while silver declined 1.57 percent to Rs 2,55,351 per kilogram, from their previous close.

Precious metal prices remained volatile on March 16 as escalating tensions linked to the Iran conflict. International spot gold was hovering at $5,021 per ounce on Comex, down 0.80 percent from the previous close, while silver slipped 1.41 percent to $80 per ounce during early trade. The domestic futures price of gold closed the Friday session 0.08 percent down to Rs 1,58,400 per 10 grams, while silver edged 3.24 percent lower at Rs 2,59,279 per kilogram.