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Gold, Silver Prices Tumble 2% After Fed Holds Rates Steady

Gold and silver prices fell sharply following the US Federal Reserve's decision to keep interest rates unchanged. The Fed maintained its benchmark rate, aligning with market expectations amid geopolitical inflation risks. Analysts note key support and resistance levels for both domestic and international bullion prices. Meanwhile, oil prices surged close to 5%, nearing all-time highs.

Key Points: Gold, Silver Prices Fall as US Fed Keeps Rates Unchanged

  • Fed holds rates at 3.5-3.75%
  • MCX gold futures down 1%
  • Silver futures slide 2%
  • Oil prices surge nearly 5%
2 min read

Gold, silver prices slide up to 2 pc as US Fed keeps rates unchanged

Gold and silver prices dropped sharply after the US Federal Reserve held interest rates. Get the latest MCX rates, price targets, and analysis.

"The $4,850-$4,900 range remains a crucial resistance band. - Ponmudi R"

Mumbai, March 19

Gold and silver prices witnessed a sharp fall on Thursday following the US Federal Reserve's latest policy decision announced overnight, even as escalating geopolitical tensions in the Middle East kept bullion in focus.

On the Multi Commodity Exchange (MCX), gold futures (April 2) were trading around 1 per cent, or Rs 1,313, lower at Rs 1,51,712, hitting an intraday low at around 10:22 am. Similarly, silver futures (May 5) declined to Rs 2,43,083, down 2 per cent or Rs 5,111.

As widely expected, the US Federal Reserve kept key interest rates unchanged for the second consecutive policy meeting this year, after implementing three successive rate cuts of 25 basis points each in late 2025.

The Federal Open Market Committee (FOMC), in its March 18 meeting, maintained the benchmark federal funds rate in the range of 3.5 per cent to 3.75 per cent, in line with market expectations amid rising inflation risks linked to geopolitical developments.

However, despite the supportive backdrop, international bullion prices remained under pressure. At around 10:30 am, gold was trading down 0.92 per cent at $4,850 per ounce, while silver declined 2.42 per cent to $75.73 per ounce.

According to Ponmudi R, CEO of Enrich Money, COMEX gold is holding above key short-term support levels, with the broader trend remaining constructive amid geopolitical tensions.

"The $4,850-$4,900 range remains a crucial resistance band. A sustained move above $4,900 could push prices towards $4,950-$5,000, while a break below $4,800 may accelerate weakness," he said.

On the domestic front, he noted that MCX gold is trading above the Rs 1,50,000-Rs 1,52,000 support zone, with resistance seen around Rs 1,55,000-Rs 1,56,000. A sustained move above Rs 1,57,000 could strengthen bullish momentum.

For silver, Ponmudi said COMEX silver is holding above the $74-$75 support band, with resistance placed in the $78-$80 zone. A breakout above $80 may trigger further upside, while a breach below $75 could resume the corrective decline.

He added that MCX silver remains under pressure, trading within the Rs 2,42,000-Rs 2,40,000 support band, with near-term resistance at Rs 2,47,000-Rs 2,50,000. A breakdown below Rs 2,40,000 may lead to further downside.

Meanwhile, oil prices surged by up to 5 per cent.

Brent crude futures jumped nearly 5 per cent to $112.83 per barrel, close to their all-time high of $112.87. Meanwhile, WTI crude futures were trading at $100.02 per barrel.

- IANS

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Reader Comments

R
Rohit P
The Fed's decisions control everything, even our Indian markets. It's frustrating how our economy reacts to every word from the US. We need more domestic stability. Good analysis by Enrich Money CEO though.
A
Aditya G
Silver down 2% is a significant move. Might be a good time to accumulate some for the long term. The support and resistance levels mentioned are very useful for traders. Thanks for the detailed report.
S
Sarah B
Interesting to see the global linkages. Gold falling but oil surging 5%! This geopolitical tension is creating such volatility. Not an easy environment for investors or for central banks trying to manage inflation.
M
Manish T
As a small-time investor, these sharp moves are scary. One day up, next day down. The article says the broader trend is constructive, but feels like walking on a tightrope. Hope it stabilizes soon.
K
Kavya N
In India, we don't just see gold as an investment, it's part of our culture and security. A small dip is okay, but the long-term trend must be up! This is where we park our savings for bad times.

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