Friday’s session offered little relief. MCX Gold for April delivery rose modestly by 0.23% to ₹1,44,825 per 10 grams, but silver wasn’t so lucky, crashing 1.72% or ₹3,990 to ₹2,27,470 per kg. IBJA data shows 999 pure gold at ₹1,47,218 per 10g on Friday versus ₹1,56,436 on Monday—a stark weekly fall. Pure silver dropped from ₹2,48,711 to ₹2,32,364 per kg, erasing over ₹16,000.

Geopolitical jitters from Israel’s attack on Iran’s key gas facility and the ensuing counterstrike have driven energy costs higher, stoking inflation worries worldwide. Yet, this hasn’t sustained gold’s appeal as a hedge.

Major central banks’ tough rhetoric is the real culprit. With the Fed, BoJ, BoC, and BoE hinting at prolonged high rates, gold and silver— which don’t pay interest—lose luster. The dollar’s dominance exacerbates the slide.

Chart watchers note gold testing supports between ₹1,35,000 and ₹1,40,000, with overhead resistance at ₹1,50,000+. Silver eyes ₹2,15,000-₹2,20,000, potentially rebounding to ₹2,40,000 on fresh demand.

RBI’s latest figures reveal a mixed reserve picture. Gold holdings climbed $664 million to $130.68 billion, but overall forex reserves plunged $7.05 billion to $709.76 billion for the week to March 13. This follows a $11.68 billion wipeout prior, driven by interventions to prop up the rupee against oil shocks and Iran tensions. Foreign assets specifically fell $7.678 billion to $555.568 billion, reflecting currency fluctuations.

Looking ahead, the precious metals outlook stays cautious, balancing inflation fears against a hawkish monetary backdrop.

In India, MCX gold futures settled at ₹65,150 for 10 grams, a steep fall of ₹1,900, while silver futures dropped to ₹78,400 per kg, shedding ₹2,100 in a single session. Global benchmarks mirror this: gold at $2,325/oz and silver at $27.05/oz.

Several factors converged to trigger this sell-off. A robust US jobs report bolstered the dollar index to multi-month highs, diminishing gold’s safe-haven appeal. Additionally, reduced tensions in key conflict zones prompted investors to rotate into equities.

Long-term holders remain unfazed, viewing this as a healthy pullback. For new entrants, it’s an ideal entry point ahead of seasonal demand spikes during Diwali and wedding seasons. Industry leaders note increased footfall at bullion exchanges.

Looking ahead, technical charts suggest support levels holding firm, but a break below could extend the decline. Traders are advised to monitor Fed speeches and inflation prints, which could dictate the next move.

This episode highlights the interplay between currency strength, policy decisions, and sentiment in shaping metal prices. Savvy investors are positioning accordingly, balancing caution with opportunity in these fluctuating times.