Gold and silver prices in India declined in early trade on Thursday after the US Federal Reserve announced it was keeping interest rates unchanged in its overnight policy decision.
The Fed’s Federal Open Market Committee (FOMC) on March 18 maintained benchmark rates at 3.5–3.75 per cent for the second consecutive meeting this year, following earlier 0.25 per cent cuts in September, October, and December 2025.
Despite the rate pause, rising crude oil prices—driven by the ongoing US-Israel war on Iran, now in its third week—have kept yellow and white metals in focus as safe-haven assets amid geopolitical uncertainty.
International spot gold fell 1.22 per cent to $4,836 per ounce, while spot silver dropped more than 2.25 per cent to $75.75 per ounce as of early Asian trade.
Gold prices have been lacklustre in March so far, shedding nearly 4 per cent, while silver has lost 16 per cent during the same period.
On the Multi Commodity Exchange (MCX), gold futures hovered around ₹155,000 per 10 grams, and silver traded near Rs 250,000 per kg.
Gaurav Garg, expert analyst of global market trends, said, "The ongoing volatility in the precious metals market is largely attributed to investor sentiment ahead of the US Federal Reserve's upcoming policy decision, which has created a cautious atmosphere, especially amid rising inflation concerns linked to high oil prices stemming from geopolitical tensions in the Middle East.”
Brent crude touched $112 per barrel on Thursday after the latest escalations between the US-Israel alliance and Iran.
Traders expect further corrections in gold and silver in the near term if crude prices remain elevated and the Middle East conflict shows no signs of de-escalation.
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