Gold Experiences Steepest Decline in 40 Years; Silver Plummets

Domestic market moves

On the MCX, gold fell nearly 6 percent, slipping below the Rs 1.37 lakh level. Silver hit an intraday low of Rs 2,11,729 per kilogram on March 23.

Silver later recovered slightly to Rs 2,13,045 per kilogram. That left it down Rs 13,727, or about 6.05 percent on the day.

Silver is now more than 50 percent below its late January 2026 peak of Rs 4,39,337 per kilogram. Overall, Indian gold and silver have declined between 12 and 17 percent so far in March.

Global price action

Internationally, gold experienced its worst weekly drop in 40 years. Prices slid from roughly $5,200 per ounce on March 13 to $4,354 per ounce by March 23.

The metal had earlier reached an all-time high of $5,595.51 per ounce. Spot gold from ICE showed levels around $4,400.44 after touching $4,320.08, the lowest intraday since early January.

Drivers behind the sell-off

Markets cited rising inflation pressures, driven partly by higher oil prices. That pushed markets to price in a pause or further tightening from major central banks.

Liquidity strains in large economies also weighed on sentiment. A firm US dollar, near the 100 mark, added to downward pressure on bullion.

Geopolitical backdrop

Tensions in the Middle East intensified the volatile mix. US President Donald Trump warned of strikes on Iranian power plants if the Strait of Hormuz stayed closed.

Tehran responded by warning it could target key US and Israeli assets if its energy infrastructure was attacked. Despite these risks, gold did not attract traditional safe-haven flows.

Analyst commentary and outlook

Trading Economics noted that last week alone saw gold fall more than 10 percent. Rising oil and inflation fears helped trigger the sharp correction.

Analysts at Phillip Nova and senior market analyst Priyanka Sachdeva said the pullback may offer long-term buying chances. They suggested investors could consider phased accumulation at lower levels.

Technical watchers flagged the break below $4,400 opened the path toward the 200-day moving average near $4,154 per ounce. That level could act as a nearer-term downside target.

Market structure concerns

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said some policymakers might seek liquidity options. That could include selling gold, he added.

Hansen also argued that higher real yields, a stronger dollar, and position adjustments have outweighed gold’s geopolitical appeal. These forces explain why bullion did not rally despite regional conflict.

Implications for investors

Filmogaz.com reporting indicates the current correction has widened entry points for long-term holders. Short-term volatility is likely while macro and geopolitical risks persist.

Given the sharp moves, investors should weigh liquidity plans and risk tolerance. Gold has seen its steepest decline in 40 years, and silver has plummeted in recent weeks.