Who is involved
Gold prices on the Multi Commodity Exchange (MCX) have recently experienced a significant downturn, marking a stark contrast to prior expectations. Just weeks ago, investors were optimistic about gold’s stability as a safe-haven asset amidst global uncertainties. However, the landscape has shifted dramatically, leading to a sharp decline in prices.
On March 23, 2026, the MCX gold rate opened 3% lower at ₹1,40,158 per 10 grams. This opening price was already a signal of trouble, but the situation worsened as gold hit a low of ₹1,33,352, slipping as much as ₹11,140, or 7.70%. This marked a continuation of a troubling trend, as gold prices had already crashed more than 10% the previous week.
The immediate effects of this decline have been felt across the market. By 11:15 AM, the MCX gold price was trading lower by ₹10,896, or 7.54%, at ₹1,33,596 per 10 grams. Silver prices mirrored this downward trajectory, opening 4% lower at ₹2,17,702 per kg and crashing as much as 11.31% to ₹2,01,111 per kg, down ₹25,661. This significant drop in both gold and silver prices has raised concerns among investors and traders alike.
Experts attribute this sharp decline to a combination of escalating geopolitical tensions, particularly the ongoing conflict involving the United States and Iran, and rising crude oil prices. These factors have contributed to increased production and transportation costs globally, feeding into broader inflationary pressures. Jigar Trivedi, a market analyst, noted that “MCX gold price may find support at ₹1,33,000 – ₹1,30,000 levels, while resistance is seen at ₹1,40,000 – ₹1,44,000 levels.” This insight underscores the precarious position of gold prices in the current market.
Moreover, the probability of a rate hike at the upcoming Federal Reserve meeting in June has risen to approximately 22%. This expectation has further fueled the decline in gold prices, as investors anticipate tighter monetary policy. Ajay Kedia, another market analyst, stated, “The overall trend for gold prices remains negative, and investors can sell on rise from these levels.” Such sentiments reflect a growing consensus that the market may not recover soon.
As of March, MCX gold has fallen approximately 15%, while MCX silver has dropped a staggering 25%. These figures highlight the severity of the current market conditions and the challenges facing investors. The sustained global weakness in gold prices has left many questioning the future of this traditionally stable asset.
In summary, the recent decline in gold prices on the MCX illustrates a significant shift in market dynamics, driven by geopolitical tensions and rising interest rate expectations. Investors are now faced with a challenging landscape as they navigate these turbulent waters, with many experts advising caution in the face of ongoing volatility.
