Mumbai, March 19 (IANS) Gold and silver prices witnessed a sharp fall on Thursday following the US Federal Reserve’s latest policy decision announced overnight, even as escalating geopolitical tensions in the Middle East kept bullion in focus.

On the Multi Commodity Exchange (MCX), gold futures (April 2) were trading around 1 per cent, or Rs 1,313, lower at Rs 1,51,712, hitting an intraday low at around 10:22 am. Similarly, silver futures (May 5) declined to Rs 2,43,083, down 2 per cent or Rs 5,111.

As widely expected, the US Federal Reserve kept key interest rates unchanged for the second consecutive policy meeting this year, after implementing three successive rate cuts of 25 basis points each in late 2025.

The Federal Open Market Committee (FOMC), in its March 18 meeting, maintained the benchmark federal funds rate in the range of 3.5 per cent to 3.75 per cent, in line with market expectations amid rising inflation risks linked to geopolitical developments.

However, despite the supportive backdrop, international bullion prices remained under pressure. At around 10:30 am, gold was trading down 0.92 per cent at $4,850 per ounce, while silver declined 2.42 per cent to $75.73 per ounce.

According to Ponmudi R, CEO of Enrich Money, COMEX gold is holding above key short-term support levels, with the broader trend remaining constructive amid geopolitical tensions.

“The $4,850–$4,900 range remains a crucial resistance band. A sustained move above $4,900 could push prices towards $4,950–$5,000, while a break below $4,800 may accelerate weakness,” he said.

On the domestic front, he noted that MCX gold is trading above the Rs 1,50,000–Rs 1,52,000 support zone, with resistance seen around Rs 1,55,000–Rs 1,56,000. A sustained move above Rs 1,57,000 could strengthen bullish momentum.

For silver, Ponmudi said COMEX silver is holding above the $74–$75 support band, with resistance placed in the $78–$80 zone. A breakout above $80 may trigger further upside, while a breach below $75 could resume the corrective decline.

He added that MCX silver remains under pressure, trading within the Rs 2,42,000–Rs 2,40,000 support band, with near-term resistance at Rs 2,47,000–Rs 2,50,000. A breakdown below Rs 2,40,000 may lead to further downside.

Meanwhile, oil prices surged by up to 5 per cent.

Brent crude futures jumped nearly 5 per cent to $112.83 per barrel, close to their all-time high of $112.87. Meanwhile, WTI crude futures were trading at $100.02 per barrel.

–IANS

ag/na