Gold Prices Drop Amid Strong Dollar; Silver Shows Recovery on MCX
Synopsis
On March 12, gold prices in India fell slightly while silver rebounded on the MCX amid strong buying. The Indian rupee also reached a record low against the dollar due to rising crude oil prices.
Key Takeaways
Gold prices fell to Rs 1,61,665 per 10 grams.
Silver prices increased to Rs 2,71,065 per kilogram.
The Indian rupee hit a new low at 92.3575 against the dollar.
Strong buying interest was noted in the Rs 1,56,000–Rs 1,57,000 range.
Global factors are influencing local market trends.
Mumbai, March 12 (NationPress) On Thursday, gold prices in India experienced a slight decline, while silver managed to bounce back from its initial losses due to robust buying at lower price levels. On the Multi Commodity Exchange (MCX), gold for April futures was recorded at Rs 1,61,665 per 10 grams, dipping by Rs 124 or 0.08 percent.
Gold had initially opened higher at Rs 1,62,799 per 10 grams compared to its previous closing of Rs 1,61,789, but later lost its gains amid unfavorable global trends.
Analysts noted that significant buying interest remains present in the Rs 1,56,000–Rs 1,57,000 demand range.
“As long as prices remain above this support level, the medium-term bullish perspective stays intact. A sustained breakout above Rs 1,65,000 could ignite bullish momentum toward Rs 1,75,000–Rs 1,80,000,” stated one analyst.
Conversely, silver displayed resilience during the trading session. MCX silver for May futures rebounded from early setbacks, trading at Rs 2,71,065 per kilogram, marking an increase of Rs 2,574 or 0.96 percent.
The contract opened at Rs 2,69,212 per kilogram, slightly above its prior close of Rs 2,68,491.
The drop in gold prices coincided with a stronger US dollar and diminished expectations for near-term interest rate cuts, putting pressure on international bullion markets.
A stronger dollar makes gold, priced in dollars, more costly for investors using other currencies, thereby typically reducing demand.
In the global markets, spot gold fell by 0.2 percent to $5,165.73 per ounce, while US gold futures for April delivery also dropped by 0.2 percent to $5,171.40 per ounce. Spot silver remained stable at $85.82 per ounce.
Meanwhile, the Indian rupee reached a new record low on Thursday, driven by a sharp increase in crude oil prices and sustained strength in the US dollar.
The local currency fell by 0.3 percent to 92.3575 against the dollar, surpassing its previous all-time low of 92.3475 recorded earlier this week.
Point of View
It is crucial to highlight the ongoing fluctuations in gold and silver prices, which are influenced by both international markets and local economic conditions. The recent strength of the US dollar and its effects on commodity prices warrant close attention from investors and consumers alike.
NationPress
1 Jul 2026
Frequently Asked Questions
Why did gold prices decline on March 12?
Gold prices fell due to a stronger US dollar and reduced expectations of interest rate cuts, impacting demand.
How did silver perform on the same day?
Silver prices rebounded on the MCX, showing recovery after initial losses due to strong buying activity.
What is the current outlook for gold prices?
The medium-term outlook remains bullish as long as prices stay above the Rs 1,56,000–Rs 1,57,000 support range.
What impact does a stronger dollar have on gold prices?
A stronger dollar makes gold more expensive for international investors, typically leading to decreased demand.
What is the current status of the Indian rupee?
The Indian rupee has hit a record low against the dollar, influenced by rising crude oil prices and dollar strength.
