MCX gold price falls 2% to ₹1.44 lakh/10 gm as West Asia war enters its fifth week on March 30

At around 11:00 AM, the contract was trading ₹205 or 0.14% lower at ₹1,47,050 per 10 grams, tracking a decline in international yellow metal prices as the West Asia crisis entered its fifth week.

However, the silver contract for expiry in May advanced as much as ₹1,634 or 0.72% to the day’s high of ₹2,29,588 per kilogram, from the closing price of ₹2,27,954 per kilogram on the MCX. At the time of writing, it stood at ₹2,29,000 per kilogram, marking a ₹1,046 or 0.46% jump.

COMEX gold, silver

In the global markets, COMEX gold contracts (expiry in April) slipped as much as 1.76% to an intraday low of $4,413.40 per troy ounce, in comparison to the closing price of $4,492.50 in the previous trading session.

However, it recovered and was trading 0.25% higher at $4,503.60 per troy ounce at the time of writing.

COMEX silver futures (May delivery) advanced by 1.16% to the session’s high of $70.575 per ounce, compared to the close of $69.796 on Friday. At the time of writing, it was at $70.465 per ounce, up by 0.96%.

Why are gold prices falling

The yellow metal prices declined amid dynamic developments in the war in West Asia, as the conflict entered its fifth week. Crude oil prices remained elevated, with Brent crude hovering above $113 per barrel (bbl), leading to inflationary concerns.

Market participants will be on the lookout for speeches from the US Federal Reserve Chair Jerome Powell and other Fed officials, scheduled for later today.

On the macroeconomic front, investors will also focus on manufacturing PMI data from major economies, CPI readings from Germany and the Eurozone, along with US consumer confidence, nonfarm payrolls, and employment data scheduled later in the week.

Meanwhile, the rupee recovered 128 paise from its all-time low to 93.57 against the US dollar in early trade on Monday, after the Reserve Bank of India (RBI) brought down the net open position that banks can keep overnight to $100 million, with compliance required by April 10.