Gold, silver slide on rising crude, stronger dollar; dip could trigger festive buying

The International Bullion Jewellers Association (IBJA) pegged the standard price of 10 grams of gold at Rs 1,47,889, and silver at Rs 2,29,873 per kilogram at its 18:30 rate session.

• Gold and silver prices fell sharply amid Iran-linked tensions.
• Rupee hits record low as oil prices exceed $110 per barrel.
• Festive season may boost demand for gold and silver despite dip.

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Precious metal prices fell sharply on March 19, as Iran-linked tensions drove up oil prices and strengthened the US dollar, weighing on bullion demand.

Domestic gold futures on MCX fell to an intraday low of Rs 1,41,298 per 10 grams before recovering to Rs 1,45,179, still down 5.13 percent. Prices had earlier hit a yearly low of around Rs 1.39 lakh on January 1, 2026

Silver also edged to a low of Rs 2,15,162 per kilogram, the lowest so far this year, but trimmed some losses to trade at Rs 2,27,817 per kilogram as of 19:32 IST.

The international spot prices too fell on Comex, with gold hovering just above $4,631 per ounce, down 5.41 percent and silver declined below $70 per ounce, shedding 10.54 percent over the last 24 hours.

The International Bullion Jewellers Association (IBJA) pegged the standard price of 10 grams of gold at Rs 1,47,889, and silver at Rs 2,29,873 per kilogram at its 18:30 rate session.

Meanwhile, the Indian rupee slipped to an all-time low of 93 against the US dollar. Brent crude briefly topped $110 per barrel today as disruptions in the Strait of Hormuz have pushed crude prices near four-year highs, intensifying concerns over energy-driven inflation.

Current dip amid festive season may boost gold and silver demand

The current dip in precious metals is likely to attract festive buying,  as occasions like Gudi Padwa, Ugadi, Chaitra Navratri, Eid ul-Fitr, Rama Navami and Mahavir Jayanti provide an auspicious window for purchases.

“Festive gifting sentiment for gold and silver remains resilient. While higher price levels may lead to some shift towards lightweight jewellery and digital formats, overall buying interest remains strong during auspicious occasions,” said Renisha Chainani, Head of Research of Augmont.

The analyst estimates that any dips are likely to attract festive buying. “Silver, in particular, is gaining traction as an affordable gifting alternative. Overall, the festive season is expected to support demand, reinforcing the long-term bullish outlook for precious metals.”

Gold demand in March weakened sharply amid escalating tensions with Iran, as heightened volatility, a stronger US dollar, and rising oil prices have pushed the metal back toward pre-conflict levels.

Why is bullion down despite ongoing geopolitical tensions?

“Bullion remained under pressure as markets focused on the likelihood of higher-for-longer Fed interest rates amid persistent inflation risks. The US-Israel conflict with Iran shows no signs of easing, keeping oil prices elevated above $100 per barrel,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.

Furthermore, Chair Jerome Powell, while keeping the policy rate unchanged, acknowledged that rising oil prices will contribute to inflationary pressures, emphasising that the economic implications of the conflict remain uncertain, and that the central bank will adopt a wait-and-watch approach as the situation evolves.

Analysts estimate that gold remains technically weak, with resistance now shifting lower towards Rs 1.50 lakh, while key support is seen in the Rs 1.44 lakh to Rs 1.42 lakh 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,” said Jateen Trivedi, VP Research Analyst (Commodity &  Currency) at LKP Securities.