Gold near ₹1.57 lakh per 10 grams on MCX, silver gains 2%

Gold and silver prices in India moved higher on March 17, tracking firm global trends and continued geopolitical uncertainty, while investors assessed the outlook for inflation and interest rates.

On the domestic bourse, MCX gold contracts for April 2026 delivery rose about 1% to trade near ₹1.56 lakh per 10 grams. MCX silver contracts for May 2026 delivery gained around 2%, touching an intraday high of ₹2.61 lakh per kg.

The gains in domestic bullion prices mirrored global markets,

where spot gold rose about 0.4% to trade above $5,020 per ounce, while silver also advanced.

Global cues drive domestic prices

Gold prices found support as investors monitored developments in the Middle East conflict and its impact on oil supply routes. Easing concerns around disruptions in the Strait of Hormuz briefly weighed on crude oil and supported broader market sentiment, though prices remained elevated above $100 per barrel.

Higher crude oil prices tend to stoke inflation by increasing transportation and production costs, which in turn can support demand for gold as an inflation hedge. At the same time, expectations around interest rates remain a key factor, as higher rates typically reduce the appeal of non-yielding assets like gold.

Investors are now focused on a series of central bank meetings this week, including the US Federal Reserve, which is widely expected to keep rates unchanged.

What is driving gold prices in India

Market participants say gold prices in India are currently being influenced by a mix of global and domestic factors, including inflation trends, geopolitical tensions, and movements in the US dollar.

According to Piyush Jhunjhunwala, Founder and CEO of Stockify, gold prices have seen strong movements in 2026 amid global uncertainty and shifting investor behaviour.

Prices have risen sharply from around ₹13,500 per 10 grams in early January, marking an increase of nearly 18–20% in a short period.

Jhunjhunwala added that while the broader trend remains firm due to geopolitical risks and elevated crude oil prices, short-term fluctuations continue, including recent declines linked to a stronger US dollar and cautious expectations around global rate cuts.

Changing investor trends

Analysts also point to evolving investor behaviour in the gold market. Younger investors are turning to digital gold and retail formats, while inflows into traditional exchange-traded funds (ETFs) have seen intermittent moderation.

-With agencies inputs

Note To Readers

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.