Gold and Silver Prices Fell Amid Heightening Geopolitical Tensions

On March 24, 2026, gold and silver prices extended their downward trend, weighed down by a stronger US dollar and persistently high bond yields. These macroeconomic pressures continued to overshadow the metals’ traditional safe-haven appeal, even as geopolitical tensions in West Asia kept markets on edge.

Gold and Silver Prices Dragged Amid West Asia Tension

On the Comex, gold slipped 1.17% to $4,355.80 per ounce, while silver saw a steeper decline of 2.62%, settling at $67.54 per ounce. The broader weakness follows a sharp correction in recent sessions, with heavy selling also recorded in domestic markets a day earlier.

In Delhi, gold prices had already dropped nearly 6% to ₹1.43 lakh per 10 grams on March 23, while silver tumbled over 4% to ₹2.30 lakh per kg, mirroring global trends and softer demand conditions.

Key Factors Behind Fall in Gold Prices

Macro Headwinds 

Analysts note that the current phase reflects a clear shift, where macroeconomic factors such as rising yields and a firm dollar are taking precedence over gold and silver’s safe-haven status.

Geopolitics and Oil Remain Key Triggers

Markets are closely tracking developments around the Iran conflict, particularly due to its potential impact on global energy supplies. Concerns over disruptions in the Strait of Hormuz, a vital route for crude shipments, have added to oil price volatility, further influencing investor sentiment.

Liquidity Pressures Driving Sell-Off

Experts also highlight that the correction is being amplified by liquidity constraints and the unwinding of existing positions, as investors rebalance portfolios amid uncertainty.

Domestic Market Impact

Industry players suggest that the price drop also reflects broader economic disruptions linked to geopolitical tensions, which have dampened demand in the local market.

Also Read: Indian Bank Raises ₹5,000 Crore via 10-Year Infra Bonds at 7.15% Coupon Rate

Gold Outlook

Looking ahead, analysts expect continued volatility, with prices likely to react sharply to geopolitical developments, fluctuations in oil prices, and signals from central banks. However, the longer-term outlook for precious metals remains supported by their role as strategic hedges in times of uncertainty.

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