Gold Prices Crash Over 10% in Futures Trade
New Delhi, March 23 — Gold prices plunged sharply by more than 10% on Monday, falling to ₹1.29 lakh per 10 grams in futures trading amid a broad global sell-off in precious metals driven by macroeconomic pressures.On the Multi Commodity Exchange (MCX), gold dropped ₹14,897, or 10.3%, to ₹1,29,595 per 10 grams.
Steep Fall from Record High
The yellow metal has now declined by ₹63,501, or nearly 33%, from its all-time high of ₹1,93,096 per 10 grams recorded on January 29, 2026.Key Drivers Behind the Decline
Analysts attributed the sharp fall to rising inflation concerns and a surge in crude oil prices, both of which have weighed on the global economic outlook.Gaurav Garg, Research Analyst at Lemonn Markets Desk, said the sell-off reflects mounting fears around economic stability. He added that a stronger US dollar and rising bond yields have triggered liquidity-driven selling, weakening gold’s traditional safe-haven appeal.
Recent Market Performance
Gold had already been under pressure last week, declining by ₹13,974, or 8.82%, to close at around ₹1.44 lakh per 10 grams in the domestic market.Global Trends
In the international market, gold futures for the April contract dropped by USD 474.9, or 10.4%, hitting an intraday low of USD 4,100 per ounce.Over the past week, gold futures fell by USD 486.8, or 9.6%, settling at USD 4,574.9 per ounce.
Sharpest Weekly Drop in Decades
According to Renisha Chainani, Head of Research at Augmont, gold witnessed an aggressive correction last week, plunging nearly USD 500 — its steepest weekly decline since 1983. The metal is now down nearly 17% over the past three weeks.Institutional Selling Pressure
Chainani noted that the sell-off has been largely driven by forced liquidation and cash-raising by institutional investors, particularly from the Arab Gulf region.“In times of extreme uncertainty, investors tend to liquidate their most liquid assets first. Gold, being one of the most liquid global assets, becomes a source of funds rather than a safe-haven destination,” she said.
Outlook: Volatility Likely to Continue
Gold has broken key support levels, and further profit-booking cannot be ruled out. However, analysts suggest that short-covering and a potential rebound toward USD 4,750 per ounce may occur in the near term.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.