Gold Prices Plunge Over Rs 3,600 in Futures Trade Amid Strong Dollar and Global Pressure
Weak Global Cues and Rising US Yields Weigh on Bullion Market
New Delhi, March 19: Gold prices witnessed a sharp decline in futures trading on Thursday, falling by Rs 3,616 to Rs 1.49 lakh per 10 grams, as global market pressures and a strengthening US dollar dampened investor sentiment.On the Multi Commodity Exchange, gold contracts for April delivery dropped by Rs 3,616, or 2.36 percent, to Rs 1,49,409 per 10 grams. The decline was recorded with a trading volume of 7,387 lots, reflecting significant market activity during the session.
Strong Dollar and Bond Yields Reduce Safe Haven Appeal
Market analysts attributed the steep fall in gold prices to a stronger US dollar and elevated US Treasury bond yields, which reduced the appeal of gold as a safe haven asset.In the international market, gold futures for the April contract on the Comex also saw a sharp drop, falling by USD 120.84, or 2.47 percent, to USD 4,775.36 per ounce in New York.
Gold prices slipped below the USD 4,800 per ounce level as stronger US producer inflation data and a firm dollar outweighed demand arising from ongoing tensions in West Asia, according to Renisha Chainani, Head of Research at Augmont.
She noted that elevated US Treasury yields continued to cap gains in the precious metal, keeping overall market sentiment subdued despite geopolitical uncertainties.
Central Bank Signals Keep Market on Edge
The US Federal Reserve, in its latest policy decision on Wednesday, kept interest rates unchanged while highlighting inflation risks linked to the West Asia conflict and maintaining a cautious stance.The central bank continues to project one rate cut this year, indicating that any easing will depend on clear signs of cooling inflation. This has made gold prices highly sensitive to incoming macroeconomic data.
Meanwhile, the Bank of Japan also held its key short-term interest rate steady at its March 2026 policy meeting, maintaining borrowing costs at their highest level since September 1995.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, stated that policymakers continue to see moderate economic recovery, although rising uncertainty due to the escalating West Asia conflict is clouding the broader outlook.
Summary
Gold prices declined sharply in both domestic and international markets on Thursday, pressured by a strong US dollar, rising bond yields, and cautious central bank signals. Despite geopolitical tensions, macroeconomic factors continue to dominate bullion price movements.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.