Gold, Silver Prices Plummet Amid Dollar Surge

Precious metal prices in India continued their downward trend on Tuesday, March 24, 2026. A stronger US dollar and the inflationary pressures from surging crude oil prices dampened hopes for interest rate cuts. Global geopolitical tensions, particularly the Middle East conflict, have prompted many central banks to pause their key interest rates, impacting market liquidity and inflation expectations.

MCX gold saw a significant drop, falling by approximately Rs 2,900 in early trading, reaching an intraday low of Rs 1,36,292 per 10 grams. Similarly, MCX silver plunged by about Rs 11,600, hitting a low of Rs 2,13,562 per 1 Kg. Both metals are trading near their daily lows, reflecting considerable pressure.

Analysts point to weak global cues as a primary driver for the downturn in Indian precious metal markets. Spot gold has experienced its worst downtrend in years, marking ten consecutive sessions of losses. While a brief rebound occurred on March 23rd following a tweet from President Trump regarding Iran, subsequent denials and escalated tensions have renewed bearish sentiment.

The dollar climbed towards the 100 mark as Iran dismissed negotiation talks and launched new attacks, while Israel continued its strikes. This increased uncertainty, coupled with rising energy prices, has elevated inflation concerns and bolstered expectations of interest rate hikes, contributing to gold's significant drop from its March peak.