Silver, Gold Rate Today: Silver and gold prices declined on Monday, March 9, pressured by a strengthening U.S. dollar, which made dollar-denominated bullion more expensive for investors using other currencies. At the same time, rising energy prices heightened inflation concerns, reducing expectations of near-term interest rate cuts.
MCX Silver rate fell 1.3% to its day’s low f ₹2,64,747 per kg while MCX Gold rate fell 1.1% to ₹1,59,826 per 10 gram.
In the international markets, Spot silver dropped 2.2% to $82.50 per ounce during early trading. Gold prices also moved lower. Spot gold slipped 1.7% to $5,082.51 per ounce as of 0233 GMT, while U.S. gold futures for April delivery fell 1.4% to $5,099.40.
Other precious metals also witnessed declines. Spot platinum dropped 2.8% to $2,076.07, while palladium fell 1.2% to $1,605.12.
Why are gold and silver prices falling?
The downturn in bullion prices came as the U.S. dollar strengthened, climbing to its highest level in more than three months. A stronger dollar typically pressures precious metals because it raises the cost of bullion for investors holding other currencies.
At the same time, U.S. Treasury yields moved higher, with the 10-year Treasury yield rising to a one-month high, increasing the opportunity cost of holding non-yielding assets such as gold.
Meanwhile, global energy markets saw sharp volatility. Crude oil prices surged more than 20% to above $110 per barrel after the widening U.S.-Israeli conflict with Iran prompted several major Middle Eastern oil producers to curb supply. The move reflected growing concerns that shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes, could face prolonged disruptions.
Moreover, Iran on Monday named Mojtaba Khamenei as the successor to his father, Ali Khamenei, as the country’s supreme leader, signalling that hardline leadership is expected to remain firmly in power.
Apart from the spike in crude oil prices, markets also reacted to remarks by U.S. President Donald Trump, who played down concerns over the recent surge in energy prices.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” Trump wrote on social media on Sunday evening Washington time.
Monetary policy expectations also shifted amid the changing macroeconomic environment. According to the CME Group’s FedWatch tool, investors widely expect the U.S. Federal Reserve to hold interest rates steady at the conclusion of its two-day policy meeting on March 18.
Market pricing also showed rising expectations that the Fed may delay rate cuts. The probability that the central bank will keep rates unchanged in June increased to more than 51%, up from below 43% last week.
more to come….