On Thursday, March 12, 2026, gold and silver prices declined on the Multi Commodity Exchange of India (MCX). Gold was trading at ₹1,61,660 per 10 grams, while silver fell to ₹2,66,969 per kilogram. Notably, in just the last two days, silver prices have dropped by more than ₹10,000, while gold has declined by around ₹1,500. Usually, prices of precious metals rise during periods of geopolitical tension, but this time macro-economic factors appear to be putting pressure on prices.
Key Reasons Behind the Price Decline
Several domestic and global factors are contributing to the fall in gold and silver prices:
Rise in crude oil prices:Crude oil has reached new highs, impacting the broader commodities market. Supply disruptions caused by tensions in the Middle East have pushed oil prices upward.
Investors moving toward the dollar:The escalating conflict involving the United States, Israel, and Iran has led investors to shift toward dollar-denominated assets, reducing demand for gold and silver.
Profit booking:Since prices were already near record highs, investors began selling to lock in profits after the recent surge, resulting in a price correction.
Alternative investment options:Investors are also moving toward other safe-haven and strategic assets such as the US dollar, crude oil, and defense sector stocks, which is affecting demand for precious metals.
MCX Price Trend This Week
Wednesday: Gold closed at ₹1,61,976 (per 10g) and silver at ₹2,69,211 (per kg).
Tuesday: Gold closed at ₹1,63,201, while silver was at ₹2,77,000.
Monday: Gold was at ₹1,60,387 and silver at ₹2,67,600.
Retail Prices in Delhi Today
24-carat gold: ₹1,63,470 per 10 grams
22-carat gold: ₹1,49,860 per 10 grams
Silver (1 kg): ₹2,89,900
The recent correction in prices has caught investors’ attention, especially after the strong rally seen in precious metals in recent weeks. However, market analysts say prices may remain volatile depending on global economic developments and geopolitical tensions.