21 March,2026 01:52 PM IST | New Delhi | mid-day online correspondent
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Gold prices declined sharply by 5.89 per cent this week, weighed down by sustained profit booking and a strengthening US dollar, signalling a correction after a prolonged rally in precious metals, reported news agency IANS.
Market analysts said volatility driven by global cues, including geopolitical tensions and monetary policy signals, has impacted investor sentiment.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold fell from Rs 1,56,436 on Monday to Rs 1,47,218 by Friday, reported IANS.
On the Multi Commodity Exchange (MCX), gold April futures edged up 0.23 per cent on Friday to Rs 1,44,825, while silver May futures declined 1.72 per cent to â¹Rs 2,27,470 per kg, reported IANS.
Analysts attributed the decline primarily to profit booking after gold's recent highs, along with a stronger dollar that typically reduces the appeal of non-yielding assets like gold.
Precious metals are expected to remain under pressure in the coming week as markets react to mixed global signals.
Geopolitical developments in West Asia had earlier boosted safe-haven demand for gold. However, the recent escalation, including strikes on energy infrastructure, has introduced volatility rather than sustained support.
Rising crude oil and natural gas prices have also raised concerns about imported inflation, adding another layer of complexity to market movements.
Major central banks, including the US Federal Reserve, Bank of Japan, Bank of Canada and Bank of England, have indicated a cautious to hawkish stance, suggesting interest rates may remain elevated, reported IANS.
Higher interest rates tend to reduce the attractiveness of gold, which does not offer returns like interest-bearing assets.
Market experts noted that MCX gold is approaching key support levels after its recent correction. Resistance is seen in the Rs 1,50,000-Rs 1,52,000 range, while Rs 1,35,000-Rs 1,40,000 is expected to act as a strong demand zone, reported IANS.
Silver prices also saw a sharp correction during the week, with key support seen between Rs 2,15,000 and Rs 2,20,000, reported IANS.
Despite the decline, analysts said silver retains a broader bullish outlook due to its dual role as both a safe-haven and an industrial metal. A recovery towards Rs 2,40,000 is possible if buying interest strengthens.
With global uncertainties, currency movements and interest rate expectations influencing markets, precious metals are likely to remain volatile in the near term.
(With inputs from IANS)
