Gold and Silver slide in early trade on MCX as Fed rate cut hopes fade

Gold and silver prices declined sharply on the MCX in early trading as expectations of a US Federal Reserve rate cut weakened. Gold April futures fell over 1% to around ₹1,56,655 per 10 grams, while silver dropped nearly 2%.

Post Published By: Sona Saini

Updated : 16 March 2026, 10:08 AM IST

MCX Gold, Silver Decline on Rate Concerns

New Delhi: Gold prices fell sharply on the Multi Commodity Exchange (MCX) on Monday (March 16). In early trading, April gold futures fell by nearly ₹1,800, or 1.14%, to ₹1,56,655 per 10 grams. Silver's May futures also saw a significant decline, falling by more than ₹4,300, or approximately 1.7%, to ₹2,55,101 per kilogram.

US-Iran Tensions Increase Market Uncertainty

According to experts, the ongoing war between the US and Iran has increased uncertainty in the global market. This conflict, which began on February 28, is now in its third week. Meanwhile, crude oil prices have risen due to disruptions in oil supplies through the Strait of Hormuz. Brent crude prices remain above $100 per barrel, raising fears of increased global inflation pressure.

Impact of the Dollar Index and Interest Rates

The US dollar and interest rate expectations are also having a significant impact on gold prices. The dollar index declined by about 0.20%, but it remains above the 100 level. Meanwhile, investors expect the US Federal Reserve to keep interest rates stable at its meeting on March 18.

US Economic Data Also Increased Concerns

Recent US economic data has also increased market concerns. US GDP growth in the fourth quarter was weaker than expected, coming in at an annual rate of 0.7%, down from the previously estimated 1.4%. Meanwhile, the Fed's preferred inflation indicator, the Personal Consumption Expenditure (PCE) index, increased by 0.3% in January. On an annual basis, it reached 2.8%.

Mixed Trend for Metals in International Market

Precious metals also saw a mixed trend in the international market. Spot gold traded around $5,017 per ounce, while spot silver recorded a slight increase to $80.88 per ounce. Platinum and palladium prices also saw a slight increase.

Experts believe that the direction of gold and silver prices in the coming days will depend on global economic cues, crude oil prices, and Federal Reserve policies.