Why Silver Price Fell Today: MCX Silver Drops 1.5% After Fed Signals

Silver prices declined on Thursday as the Multi Commodity Exchange saw silver drop around 1.5% to ₹2,44,342 per kg.

Gold prices also slipped 0.8% to ₹1,51,712 per 10 grams, reflecting pressure across precious metals.

What’s Happening in Global Markets?

In international markets, silver prices showed some recovery, rising to $76.52 per ounce.

Similarly, gold gained 0.8% to $4,856.82 per ounce after a recent decline, showing ongoing volatility in the metals market.

Key Reason: Hawkish Central Banks

The main reason behind the fall is the stance taken by the Federal Reserve and the Bank of Canada.

Both central banks:

• Kept interest rates unchanged
• Indicated fewer rate cuts ahead
• Warned about rising inflation risks

This “higher-for-longer” interest rate outlook reduces the appeal of non-yielding assets like gold and silver.

Impact of Inflation and Oil Prices

Rising crude oil prices, driven by geopolitical tensions, are increasing inflation concerns globally.

Higher inflation usually supports gold and silver as safe-haven assets, but tighter monetary policy is limiting their upside.

Role of the US Dollar

A weaker US dollar helped limit the fall in silver and gold prices.

When the dollar weakens, precious metals become cheaper for global buyers, supporting demand.

Geopolitical Tensions Add Uncertainty

Ongoing tensions in the Middle East, including disruptions around the Strait of Hormuz, have increased uncertainty.

Crude oil prices have surged above $110 per barrel, adding pressure on global markets and increasing volatility in commodities.

Read More: LPG Price in India Today, March 18: Check Rates in Delhi, Mumbai, Bangalore and More Cities.

Other Metals Show Gains

While silver declined, other metals moved higher:

• Platinum rose around 0.6%
• Palladium gained about 1.2%

This indicates mixed trends across the precious metals segment.

Conclusion

Silver prices fell mainly due to the Fed’s cautious stance on rate cuts. While factors like a weaker dollar and geopolitical risks are offering some support, precious metals are likely to remain volatile in the near term.

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