Gold, silver rates today: Gold and silver rates today continue to decline on Thursday, March 19, after falling up to 4% in the previous session as the Federal Reserve warned that the Middle East conflict and rising energy prices could fuel inflationary pressures.
Spot gold rate today was down 1% to $4,844 per ounce, while spot silver prices plunged 2.45% to $75.6 per ounce, during the Asian trading hours on Thursday.
Why are gold and silver prices falling?
The Federal Reserve kept interest rates unchanged at its latest meeting on Wednesday and indicated the possibility of one rate cut this year. However, Chair Jerome Powell emphasised that any reduction would depend on clear progress in easing inflation. In its statement, the Fed noted that the ongoing conflict has made the outlook for the US economy more uncertain.
The headline Producer Price Index (PPI) increased by 0.7% in February, following a 0.3% rise in January, according to the US Department of Labour on Wednesday. The latest reading came in above expectations, as economists had projected a 0.3% increase.
Meanwhile, oil prices moved higher after Iran and Israel exchanged strikes targeting key energy facilities in the Persian Gulf. Nearly three weeks into the conflict, the surge in energy costs is adding to inflationary pressures, reducing the likelihood of rate cuts by the Fed and other central banks. This poses a challenge for gold, as the non-yielding asset tends to underperform in a higher interest rate environment.
What should investors do?
Brokerage firm Yes Bank, in its latest report titled as ‘Gold Update: Bear claws v/s Bull horns, believes that the technical analysis of safe-haven asset gold is pointing towards a bearish bias.
“The view going forward: historically, gold prices have performed well in periods of stagflation, and such risks are building now. However, for the immediate run, our technical analysis points to a bearish bias in gold prices. Close below USD 5000 / oz on daily basis to confirm the breakout for a move to USD 4600/4400 / oz, while this will be invalidated above USD 5150 / oz,” the firm said.
Meanwhile, on gold prices outlook, Ponmudi R, CEO of Enrich Money, said that the metal has entered a short-term corrective phase; however, the broader bullish structure remains intact. The recent range-bound consolidation has pushed prices below key moving averages in the short term, indicating some loss of momentum.
“COMEX Gold is currently trading in the $4,950–$5,020 support band. Strong buying interest is visible in the $4,950–$5,000 support zone, while a break below this band could push prices toward the $4,850–$4,900 level. As long as gold holds above the $4,950 zone, the broader bullish trend remains intact, and a sustained breakout above $5,100–$5,150 could pave the way for $5,200–$5,250,” Ponmudi said.
On the silver prices outlook, he added that although the broader bullish structure remains intact, the recent corrective phase has pushed prices below key moving averages in the near term.
“COMEX Silver is trading near the $76–$80 support band. Strong buying interest is visible in the $74–$78 support zone. A sustained move above $82 could reignite momentum toward the $85–$88 range and potentially retest previous highs. Despite short-term volatility, the medium- to long-term outlook remains constructive, supported by safe-haven demand amid global uncertainties,” Ponmudi opined.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
