Silver rate today: Silver price in India extended their sharp fall on Monday, March 23, as rising geopolitical tensions in the Middle East rattled global markets and pushed investors away from precious metals.
On the domestic front, MCX silver prices declined 6% or ₹13,606 at ₹2,13,166 per kg, while MCX gold also slipped around 5% or ₹7,115 to ₹1,37,377 per 10 gram, tracking weakness in global markets.
In the international market, spot silver fell 3.2% to $65.61 per ounce, while spot gold dropped 2.5% to $4,372.86 per ounce. Gold has now fallen for nine straight sessions, hitting its lowest level since early January and losing more than 10% over the past week.
Meanwhile, U.S. gold futures plunged 4.4% to $4,375.60 per ounce, indicating continued bearish sentiment.
Other precious metals also remained under pressure. Platinum declined 2.9% to $1,866.65, while palladium slipped 0.5% to $1,397.25 per ounce.
Why are gold and silver prices falling?
The recent decline in gold and silver is being driven by a mix of geopolitical tensions, rising oil prices, and shifting interest rate expectations.
Crude oil prices have surged above $110 per barrel, raising concerns about inflation globally. Higher inflation typically forces central banks, including the U.S. Federal Reserve, to delay interest rate cuts or even keep rates higher for longer.
This creates a negative environment for gold and silver, as they are non-yielding assets—meaning they do not offer interest. When interest rates stay elevated, investors tend to move money into interest-bearing instruments instead.
At the same time, the escalating conflict in the Middle East has added another layer of uncertainty. Escalating the three-week-old war, Iran said on Sunday that it would strike the energy and water systems of its Gulf neighbours if US President Donald Trump follows through on his warning to target Iran’s electricity grid within 48 hours.
Iran also warned that it could completely shut a crucial waterway and target energy, IT, and desalination infrastructure if its facilities are attacked.
Trump had issued the warning on Saturday evening (New York time), raising fears of a broader regional conflict and disruption to global energy supplies.
At the same time, reports indicated that the US military is deploying thousands of additional marines and sailors to the Middle East, further intensifying concerns.
This has strengthened the U.S. dollar and Treasury yields, both of which are typically negative for gold and silver. A stronger dollar makes precious metals more expensive for global buyers, further reducing demand.
Silver price outlook ahead
Silver prices may be under pressure in the near term, but the broader structure of the market still reflects a cautiously optimistic outlook, even as global cues like a stronger dollar and profit booking continue to weigh on sentiment. The recent correction has pushed prices into a consolidation phase, with key support and resistance levels now becoming critical for the next directional move.
Ponmudi R, CEO of Enrich Money, said, “Overall, the broader bullish bias remains intact, supported by a balance between safe-haven demand and industrial demand. However, this outlook would weaken if there is a decisive break below the key $60–$65 support zone, while geopolitical developments and macroeconomic factors are expected to continue influencing price direction.”
He noted that COMEX silver is currently trading in a relatively subdued range of $62–$70, following a sharp correction from earlier highs near the $93–$97 resistance zone. According to him, the decline has largely been driven by profit booking along with the strengthening of the US dollar.
From a technical perspective, he highlighted that the $60–$65 zone remains a crucial demand area. A decisive breakdown below this level could accelerate the downside, potentially dragging prices toward $50 or even lower levels.
On the upside, he indicated that if silver manages to sustain above this support band, it could pave the way for a recovery toward the $75–$80 range. In a more optimistic scenario, extended gains could push prices further higher toward the $85–$90 zone.
Overall, he maintained that while short-term volatility may persist, the interplay of safe-haven demand and industrial consumption continues to support the longer-term outlook for silver, making the current levels important to watch for confirmation of the next trend.
