Gold and silver prices in India extended their sharp decline on March 24, 2026, as surging crude oil prices and escalating geopolitical tensions triggered a wave of selling across global commodity markets. The latest downturn highlights a significant shift in investor sentiment, where inflation fears and monetary policy expectations are outweighing the traditional safe haven appeal of precious metals.
Bullion Prices Extend Decline in Domestic Markets
On the Multi Commodity Exchange (MCX), gold hovered around ₹1.37 lakh per 10 grams, struggling to find support, while silver slipped below the ₹2.18 lakh per kilogram mark. Both metals recorded steep losses of nearly 2% to 4% in early trade, reflecting persistent pressure and cautious market positioning. The weakness extended to the physical market as well, where gold prices declined across purity segments. However, the pace of decline in retail markets was relatively moderate compared to the sharp fall witnessed in the previous session, suggesting some underlying demand resilience.
Global Trends Mirror Weakness in Precious Metals
In the global market, bullion prices mirrored the bearish trend. Spot gold dropped 2% to trade near $4,340 per ounce, while silver declined more sharply by around 3.5%, hovering in the $66 to $67 per ounce range. The synchronized fall across domestic and international markets indicates a broader macro-driven correction rather than isolated regional factors.
Oil Price Surge Triggers Inflation Concerns
A major catalyst behind this decline is the sharp spike in crude oil prices. Brent crude surged to around $105 per barrel, while US WTI climbed close to $92, registering gains of 4% to 5%. Rising energy prices have intensified concerns around global inflation, prompting expectations that central banks, particularly the US Federal Reserve, may maintain a prolonged high interest rate environment. This reduces the attractiveness of non-yielding assets such as gold and silver, leading to increased outflows.
Geopolitical Tensions Add to Market Volatility
At the same time, geopolitical tensions in the Middle East continue to escalate. Renewed hostilities involving Iran, the United States, and Israel have created an atmosphere of uncertainty. While such developments typically boost safe haven demand, the current market narrative is being dominated by inflation risks and interest rate concerns. Uncertainty around potential diplomatic resolutions and the strategic significance of the Strait of Hormuz are further contributing to volatility.
Outlook Remains Cautious Amid Multiple Headwinds
Importantly, gold has already seen a significant correction, falling nearly 25% from its March peak. This sharp decline underscores the changing dynamics of the bullion market, where macroeconomic pressures are taking precedence over traditional defensive buying.
Looking ahead, analysts expect gold and silver to remain volatile, with limited upside in the near term. Investors are likely to adopt a cautious approach, closely tracking oil price trends, central bank policy signals, and geopolitical developments that will continue to shape the direction of bullion markets.
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