Gold, silver rates today: Gold and traded within a narrow range on Wednesday, March 18, on expectations around the Federal Reserve’s rate-cut trajectory against rising inflation risks stemming from the conflict in the Middle East.
Spot was trading marginally higher at $5,012 per ounce, while spot silver was down 0.17% to $79.7 per ounce during the Asian trading hours on Wednesday.
What’s driving gold and silver prices today?
The is widely expected to leave interest rates unchanged at its policy meeting on Wednesday, with investors closely watching the central bank’s assessment of rising energy prices and a softening labour market, according to a Bloomberg report.
Oil prices remained firm as the conflict entered its third week.
The US and Israel continued their strikes overnight, with Iran confirming the death of national security chief Ali Larijani, whom Israel had earlier said was killed in an airstrike.
Tehran, in turn, continued to target energy infrastructure across the Persian Gulf region, while shipping through the Strait of Hormuz remained close to a standstill.
The resulting strain on energy supplies and elevated crude prices has heightened inflation concerns, reducing the likelihood of near-term rate cuts by the Fed and other central banks. Higher borrowing costs typically weigh on precious metals, as they do not offer interest income.
Although gold’s rally has lost some steam, the metal is still up around 16% this year, supported by geopolitical tensions and concerns over the Fed’s independence. Fears of stagflation — marked by slower growth and persistently high inflation — could further underpin bullion over the longer term, as investors seek alternative stores of value.
Gold and silver prices outlook in the near term
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, believes that Gold traded near $5000, marginally higher, but continues to witness range-bound volatility as markets remain cautious ahead of the US Fed policy decision due today late evening.
“Expectations from the Fed remain subdued, with little scope for dovish commentary, especially as elevated crude oil prices keep inflationary pressures intact. Higher energy prices may delay rate cuts, which is limiting upside in gold and keeping the broader trend weak on charts,” Trivedi said.
On the technical outlook of gold prices, Ponmudi R, CEO of Enrich Money, said that the after hitting record highs, the metal has entered a short-term corrective phase, with prices slipping below key moving averages, indicating near-term weakening momentum.
“Strong buying interest is visible in the $4,950–$5,000 zone, while a break below this band could extend the correction toward $4,850–$4,900. As long as gold holds above the $5,000 mark, the broader bullish structure remains intact. A sustained breakout above $5,100–$5,150 is required to resume upward momentum toward $5,200–$5,250,” said Ponmudi.
Meanwhile, on the silver prices outlook, he added that the broader bullish structure remains intact, the recent correction has pushed prices below short-term moving averages, indicating temporary weakness.
“Strong support is placed in the $74–$78 zone, while a sustained move above $84 could reignite bullish momentum toward $88–$90. Despite short-term volatility, the medium- to long-term outlook remains constructive, supported by structural demand and safe-haven flows,” 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.