Gold, silver rates today: Gold and silver rates today were trading mixed on Monday, March 16, as tensions in the Middle East entered the third week.
Spot gold rate today fell more than 1% during early Asian trading hours, slipping below the $5,000 level. The yellow metal touched an intraday low of $4,971.30 on Monday. Meanwhile, spot silver plunged 2.23% to $79.5 per ounce on March 16.
What’s driving gold and silver prices?
Rising energy prices and mounting inflation concerns stemming from the conflict have reduced expectations that the Federal Reserve and other global central banks will begin cutting interest rates soon.
Crude oil prices surged after US strikes targeted Iran’s key oil-export hub, prompting retaliatory attacks by Tehran on energy infrastructure across several Arab states.
Uncertainty over the duration of the war has made it difficult to gauge its impact on financial markets and the broader economy. According to a Bloomberg report, an aide to Donald Trump suggested the conflict could continue for four to six weeks, while both sides have sent mixed signals. Trump said Iran is interested in striking a deal but that the US is seeking better terms, whereas Tehran maintains it has neither requested negotiations nor a ceasefire.
As the conflict persists, expectations for interest-rate cuts have weakened. Recent US consumer spending data released on Friday showed only a marginal increase in January due to slower-than-expected economic growth, even before the war began. At the same time, US consumer sentiment slipped to a three-month low as concerns grew over rising gasoline prices linked to the conflict.
What should investors do?
Aamir Makda, Commodity & Currency Analyst at Choice Broking, believes that gold prices are likely to witness a bear trend in the upcoming sessions. Makda suggested traders to consider a ‘sell on rise’ outlook.
“With recent price decline, we have observed a rise in OI levels in the April contract to 7910 lots, which suggests increased Short build-up in Gold. We are expecting a moderately bearish trend in the gold price in the upcoming sessions, and traders are advised to look for a sell-on-rise opportunity,” Makda said.
On the gold prices outlook, Ponmudi R, CEO of Enrich Money, said that the broader bullish structure remains intact, supported by persistent central bank accumulation and strong safe-haven demand amid ongoing geopolitical tensions. However, recent price action reflects short-term consolidation and corrective pressure following the retreat from weekly highs near $5,215–$5,250.
“COMEX gold futures are trading with a firm undertone in the current session, hovering around the $5,050–$5,000 range compared to the prior close near $5,150–$5,175. A decisive breakout above this resistance region could potentially accelerate the next leg of the rally toward $5,400–$5,600 or even higher levels.
On the downside, the $4,830–$4,900 zone is emerging as a strong near-term support band. A sustained break below $4,800 could trigger further corrective pressure toward the $4,700 region. Nevertheless, as long as prices continue to trade within the rising long-term trend channel, the overall outlook remains structurally bullish, with dips likely presenting accumulation opportunities within this extended bull cycle,” Ponmudi said.
On the silver prices outlook, he added that the inability to sustain higher levels triggered a wave of profit taking, with prices gradually easing toward the $78.4–$80.00 immediate support zone and currently trading slightly above the $80 level.
“COMEX Silver witnessed a notable pullback this week after facing strong resistance near the $88–$90.10 region. On the daily chart, the recent decline suggests a loss of short-term upward momentum as prices retrace from recent swing highs. Short-term momentum indicators remain neutral to mildly bearish, pointing toward a consolidation phase. A sustained break below $80 could push prices toward the $76–$72 support area.
However, the broader structure continues to point toward a constructive outlook as long as prices hold above the key $80 structural support level. A sustained recovery above $90 could revive bullish momentum and potentially pave the way for another attempt toward the $97 resistance zone,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
