Gold, silver prices drop up to 12% this week; what lies ahead for precious metals?
“A selective buy-on-dips strategy near strong support zones is preferred, as longer-term macro tailwinds remain supportive,” Ponmudi said, noting that near-term pressures from dollar strength and any signs of geopolitical easing could limit upside momentum.
- Mar 21, 2026,
- Updated Mar 21, 2026 5:31 PM IST
Precious metals saw sharp selling pressure this week as firm US dollar and a hawkish Federal Reserve outlook weighed on sentiment, offsetting the usual safe-haven demand amid geopolitical tensions, rising crude prices and weak equity markets.
On the Multi Commodity Exchange (MCX), gold futures edged up 0.23% on the day to settle at Rs 144,825 per 10 grams. On a weekly basis, the metal recorded a steep fall of about Rs 13,641 per 10 grams, translating into a decline of around 8.6%.
Silver followed a similar trend. MCX silver futures rose nearly 2% in the latest session to close at Rs 2,26,772 per kg, but still ended the week lower by about Rs 32,663, marking a decline of 12.59%.
“Precious metals are set to enter the upcoming week under visible pressure, following a sharp corrective phase driven by profit-booking, a stronger US dollar, and mixed signals from ongoing Middle East geopolitical developments,” said Ponmudi R, CEO of Enrich Money.
Ponmudi noted that MCX Gold has faced meaningful corrective pressure after retreating from highs in the Rs 1,55,000–Rs 1,60,000 range, currently consolidating around Rs 1,40,000–Rs 145,000.
“Holding above Rs 1,42,000 remains important for a potential recovery toward Rs 1,50,000–Rs 1,52,000, with further upside extending toward Rs 1,55,000–Rs 1,60,000 if fresh triggers emerge,” said Ponmudi. On the flip side, a decisive break below Rs 1,42,000 could drag prices down to the crucial demand zone of Rs 1,35,000–Rs 1,40,000, he said
Similarly, for MCX Silver, Ponmudi said a failure to hold the immediate Rs 2,20,000–Rs 2,15,000 demand zone could expose silver to a deeper dive toward Rs 2,00,000 or even Rs 1,80,000.
“Sustaining above Rs 2,15,000 may support a recovery toward Rs 2,40,000, followed by Rs 2,50,000, with further upside possible if buying strength improves,” Ponmudi said.
“However, structurally, the outlook remains positive. As per industry estimates, India’s annual gold demand continues to hover in the range of 700–800 tonnes, underlining its strong underlying consumption base," said Chetan Thadeshwar, chairman & managing director of Shringar House of Mangalsutra.
“We are already witnessing a positive demand response to the recent price softening, with buyers re-entering the market, particularly in the wedding segment. Historically, such corrections tend to unlock pent-up demand, and the same trend is now visible across key jewellery markets,” Thadeshwar noted.
“Consumers are becoming more value-conscious and strategic in their purchases, but the emotional and cultural significance of gold ensures that demand remains resilient,” Thadeshwar added.
“After testing previous highs, precious metals have entered a pullback phase, with prices now moving toward key support zones as caution dominates sentiment amid elevated event risks,” Ponmudi stated.
“A selective buy-on-dips strategy near strong support zones is preferred, as longer-term macro tailwinds remain supportive,” Ponmudi said, noting that near-term pressures from dollar strength and any signs of geopolitical easing could limit upside momentum.
Precious metals saw sharp selling pressure this week as firm US dollar and a hawkish Federal Reserve outlook weighed on sentiment, offsetting the usual safe-haven demand amid geopolitical tensions, rising crude prices and weak equity markets.
On the Multi Commodity Exchange (MCX), gold futures edged up 0.23% on the day to settle at Rs 144,825 per 10 grams. On a weekly basis, the metal recorded a steep fall of about Rs 13,641 per 10 grams, translating into a decline of around 8.6%.
Silver followed a similar trend. MCX silver futures rose nearly 2% in the latest session to close at Rs 2,26,772 per kg, but still ended the week lower by about Rs 32,663, marking a decline of 12.59%.
“Precious metals are set to enter the upcoming week under visible pressure, following a sharp corrective phase driven by profit-booking, a stronger US dollar, and mixed signals from ongoing Middle East geopolitical developments,” said Ponmudi R, CEO of Enrich Money.
Ponmudi noted that MCX Gold has faced meaningful corrective pressure after retreating from highs in the Rs 1,55,000–Rs 1,60,000 range, currently consolidating around Rs 1,40,000–Rs 145,000.
“Holding above Rs 1,42,000 remains important for a potential recovery toward Rs 1,50,000–Rs 1,52,000, with further upside extending toward Rs 1,55,000–Rs 1,60,000 if fresh triggers emerge,” said Ponmudi. On the flip side, a decisive break below Rs 1,42,000 could drag prices down to the crucial demand zone of Rs 1,35,000–Rs 1,40,000, he said
Similarly, for MCX Silver, Ponmudi said a failure to hold the immediate Rs 2,20,000–Rs 2,15,000 demand zone could expose silver to a deeper dive toward Rs 2,00,000 or even Rs 1,80,000.
“Sustaining above Rs 2,15,000 may support a recovery toward Rs 2,40,000, followed by Rs 2,50,000, with further upside possible if buying strength improves,” Ponmudi said.
“However, structurally, the outlook remains positive. As per industry estimates, India’s annual gold demand continues to hover in the range of 700–800 tonnes, underlining its strong underlying consumption base," said Chetan Thadeshwar, chairman & managing director of Shringar House of Mangalsutra.
“We are already witnessing a positive demand response to the recent price softening, with buyers re-entering the market, particularly in the wedding segment. Historically, such corrections tend to unlock pent-up demand, and the same trend is now visible across key jewellery markets,” Thadeshwar noted.
“Consumers are becoming more value-conscious and strategic in their purchases, but the emotional and cultural significance of gold ensures that demand remains resilient,” Thadeshwar added.
“After testing previous highs, precious metals have entered a pullback phase, with prices now moving toward key support zones as caution dominates sentiment amid elevated event risks,” Ponmudi stated.
“A selective buy-on-dips strategy near strong support zones is preferred, as longer-term macro tailwinds remain supportive,” Ponmudi said, noting that near-term pressures from dollar strength and any signs of geopolitical easing could limit upside momentum.