Gold and silver prices in India started the week on a noticeably weaker note this Monday, March 23, 2026. The domestic bullion market mirrored significant losses observed across global platforms. This sudden downward trend is largely driven by the intensifying US-Iran conflict, which has triggered fresh inflation worries and strengthened expectations of higher interest rates worldwide. Investors are closely monitoring the situation as safe-haven assets face unexpected volatility.
Heavy Sell-Off on the MCX
Domestic futures markets witnessed a sharp decline right from the opening bell. On the Multi Commodity Exchange (MCX), gold opened nearly 3% lower at ₹1,40,158 per 10 grams, compared to the previous close of ₹1,44,492. As trading progressed, the yellow metal slipped further to an intraday low of ₹1,37,377, marking a steep drop of about 4.9%.
Silver followed a similar trajectory, facing heavy selling pressure. Recent futures market data highlights mild pressure on bullion overall, but silver has witnessed a much sharper correction compared to gold. Traders remain cautious as they wait for more definitive global macroeconomic cues before making aggressive moves.
Global Cues and Macroeconomic Impact
The slump in domestic rates is a direct reflection of the international market. Globally, gold prices fell over 2% to a near four-month low. Spot gold traded at $4,372.86 per ounce, recording a 2.5% drop and marking its ninth consecutive session of decline. Meanwhile, April US gold futures declined 4.4% to $4,375.60. Spot silver was not immune to the bearish sentiment, dropping 3.2% to $65.61 per ounce.
The ongoing geopolitical tensions in the Middle East have complicated the economic landscape. Typically, conflicts drive gold prices up as investors seek safe havens. However, the current scenario has sparked fears of persistent global inflation, leading markets to price in aggressive interest rate hikes by central banks. Higher interest rates generally increase the opportunity cost of holding non-yielding bullion, prompting sell-offs.
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Retail Gold Rates Across Major Indian Cities
Despite the sharp futures drop, retail physical markets are showing slight resilience due to upcoming seasonal demand. The base retail market rates place 24-carat gold around ₹14,154 per gram, while 22-carat gold is priced near ₹13,480 per gram.
Prices vary slightly across different cities due to local taxes, transportation costs, and specific jewellers’ margins.
City-Wise Gold Prices (Per Gram)
| City | 24K Gold (₹) | 22K Gold (₹) |
| Delhi | 14,611 | 13,394 |
| Mumbai | 14,596 | 13,379 |
| Kolkata | 14,596 | 13,379 |
| Chennai | 14,857 | 13,619 |
Experts note that gold prices in India are mainly influenced by international bullion rates and rupee-dollar movement. With the wedding and festive seasons approaching in various parts of the country, retail demand remains stable. This physical buying is currently preventing even sharper corrections in localized retail prices.
Silver Prices and Industrial Demand Trends
Silver prices are hovering close to ₹2,44,900 per kilogram in the domestic bullion market. Unlike gold, silver prices are highly sensitive to global manufacturing trends and industrial usage. The metal continues to trade at elevated levels compared to long-term historical averages, supported heavily by industrial demand and consistent investment buying.
City-Wise Silver Prices
| City | Silver (₹ per 10 gm) | Silver (₹ per kg) |
| Delhi | 2,449 | 2,44,900 |
| Mumbai | 2,449 | 2,44,900 |
| Kolkata | 2,449 | 2,44,900 |
| Chennai | 2,499 | 2,49,900 |
Weekend Market Recap and Future Outlook
Looking back at the previous trading sessions, gold settled slightly lower at ₹1,44,492 on Friday, March 20, on the MCX. Physical bullion prices hovered around ₹1,45,520 on Sunday after the standard weekend pause. Silver had closed Friday on the MCX at ₹2,27,470 per kg, down roughly 2%, though physical market rates slightly outpaced futures at about ₹2,27,960.
Market analysts suggest that the upcoming trend in precious metals will heavily depend on currency movements, specifically the stability of the Indian Rupee against the US Dollar, and further developments in international geopolitics.
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