The ongoing conflict in the Middle East has shaken global markets. Due to the war between Iran and Israel, targeting of oil supply infrastructure could lead to severe shortage of gas and oil in the near future. The direct result of this conflict is that the prices of crude oil and gas are skyrocketing. On the contrary, along with the stock market, the prices of gold and silver are also witnessing a huge decline. A daily downward trend is being seen in the prices of both these precious metals. The mixed impact of the Federal Reserve’s (Fed) decision not to cut interest rates and the ongoing war was clearly seen on both the Indian stock market and gold and silver prices on Thursday. A decline in gold and silver rates is also being recorded on MCX exchange.
The impact of Israel’s attack on the ‘Pars Gas Field’, the Federal Reserve’s decision to keep interest rates steady, and the resignation of HDFC Bank’s part-time chairman were felt on both the stock market and gold and silver prices on Thursday morning. In early trade, the Sensex fell by more than 2,000 points. Talking about the rates of gold and silver, a huge decline was seen in both these precious metals. According to rates published on https://ibjarates.com, 24-carat gold became cheaper by ₹4,000 on Thursday, while silver prices fell by more than ₹13,000.
Gold falls below ₹40,000 level (per 10 grams)
According to rates published on https://ibjarates.com website, the price of 23-carat gold fell to ₹151,030. Similarly, the price of 22-carat gold also fell to ₹138,899 per 10 grams. Amid the ongoing conflict between Iran and Israel, gold and silver prices are witnessing a continuous decline. Gold, which had hit a record high of ₹192,000 some time ago, has now fallen by ₹40,000 per 10 grams, and its price has stabilized at ₹151,637 per 10 grams.
Silver prices fall by more than ₹175,000
Talking about silver, it has fallen by more than ₹175,000 per kg from its all-time high recorded level. On January 29, 2026, the price of silver rose to a record high of ₹420,000 per kg. However, since then it has been showing a continuous decline. According to https://ibjarates.com, silver prices fell to ₹236,809 per kg on Thursday. Thus, a decline of about ₹185,000 per kilogram has been recorded. On Thursday (March 19, 2026) alone, silver prices saw a further fall of ₹ 13,000 per kg.
Why are gold prices falling?
There are many big reasons behind the recent fall in gold prices. The most important reason is the Federal Reserve’s recent decision that it will not cut interest rates—a move by the US central bank. The Fed has indicated that it expects to cut interest rates only once this year. This has increased pressure on gold; Generally, expectations of lower interest rates act as a positive catalyst for gold prices, pushing prices higher. Conversely, when the probability of interest rate cuts decreases, a decline in demand for gold is often seen.
On the other hand, rising prices of crude oil have also increased concerns about inflation. Additionally, the ongoing conflict between the US, Israel and Iran is further adding to the uncertainty in the market. Additionally, Iran’s attacks are also impacting the supply of LNG. The deepening crisis in energy supply may further increase inflation in the coming days. Keeping all these factors in mind, investors are reducing their holdings in gold. Due to fall in prices, investors’ attention has also shifted from this metal.
Is this the right time to invest amid the downturn?
The continued decline in gold and silver prices clearly indicates that profit-booking has intensified at record high levels. Due to global cues and US dollar movement, the market is likely to remain volatile in the short term. Manoj Kumar Jain, Director, Prithvi Finmart, suggests that in this period of price improvement, investors should adopt a systematic approach to investing in gold. Regarding gold prices, he expressed hope that after the conflict calms down, the prices may rise, and the prices may reach the level of ₹200,000 this year. For systematic investments, Systematic Investment Plan (SIP) is a great option.
