March turned out to be a difficult month not only for the stock market but also for investors in gold and silver. Despite rising global tensions, especially due to the US-Iran conflict, prices of these precious metals dropped sharply instead of increasing.
Why Did Gold and Silver Prices Fall?
Usually, during global crises or war-like situations, investors move towards safe-haven assets like gold and silver, causing prices to rise. However, this time the opposite happened.
Several factors contributed to the decline:
- Rising crude oil prices increased inflation concerns
- Investors preferred holding cash instead of investing
- Strength in the US dollar put pressure on metal prices
- The US Federal Reserve kept interest rates steady
Silver Prices Drop Sharply
On the Multi Commodity Exchange (MCX), silver saw a major fall in March.
- On February 27, silver was priced at ₹2,82,644 per kg
- By March 30, it dropped to ₹2,29,033 per kg
👉 This means silver became cheaper by around ₹53,611 per kg in one month
Silver Prices in Domestic Market
According to data from the Indian Bullion Jewellers Association (IBJA):
- End of February: ₹2,66,700 per kg
- End of March: ₹2,30,135 per kg
👉 A decline of about ₹36,565 per kg in the domestic market
Gold Prices Also Decline
Gold prices also followed a similar trend and fell significantly during March.
MCX Gold Prices
- February 27: ₹1,65,659 per 10 grams
- March 30: ₹1,47,450 per 10 grams
👉 Gold dropped by approximately ₹18,209 per 10 grams
Domestic Gold Prices
- End of February: ₹1,59,097 per 10 grams
- End of March: ₹1,46,733 per 10 grams
👉 A fall of around ₹12,364 per 10 grams
Important Note on Prices
Keep in mind that domestic gold and silver prices may vary due to:
- GST (Goods and Services Tax)
- Making charges (for jewelry)
These additional costs increase the final price for buyers. Even though global tensions remained high, gold and silver prices dropped significantly in March. Rising oil prices, a strong US dollar, and cautious investor behavior played a key role in this unusual trend.
Disclaimer –
Before investing in gold, silver, or ETFs, it is always recommended to consult a financial expert.