Precious metals took a hit in Mumbai on Monday, as silver prices cratered by more than ₹3,400 and gold softened ahead of the crucial US Federal Reserve policy review. The downturn erased recent gains, leaving investors wary in a high-stakes environment.
MCX data showed the gold contract for April 2026 trading 0.75% lower at ₹1,57,274 after a 1,192-point fall. The metal swung wildly, peaking at ₹1,57,347 and bottoming at ₹1,56,665 during the session.
Silver’s slide was steeper: the May 2026 futures lost 1.19% or 3,435 points to close at ₹2,56,340, with intraday lows at ₹2,54,367 and highs at ₹2,56,444.
Overseas, gold dipped 0.66% to $5,028/oz and silver fell 0.79% to $80.70/oz. Experts point to the Fed meeting—from March 17 to 18—as the main trigger. With crude oil prices stubbornly above $100/barrel, expectations are for unchanged rates, prompting profit-taking and dollar strength to weigh on bullion.
Counterbalancing this, escalating Middle East risks sustain support. The absence of any Iran conflict resolution, coupled with recent US-Israel strikes on vital infrastructure and Tehran’s retaliation threats, bolsters the case for gold and silver as hedges.
As the week unfolds, the Fed outcome will be pivotal. Traders advise monitoring oil trends and currency moves closely, as they could prolong the current weakness or spark a rebound in these safe-haven assets.