Gold, silver crash over 7% amid West Asia tensions

Gold and silver prices in the domestic market witnessed a sharp decline of more than 7% on Monday (March 23, 2026) amid ongoing tensions in West Asia, global economic concerns and a strengthening U.S. dollar, which has shifted investor interest away from precious metals.

Also read: West Asia war updates on March 23, 2026

Gold prices fell sharply during the session, dropping from ₹1,40,158 in the opening trade to ₹1,29,595, and currently trading at ₹134 marking a steep fall of over 7%.

Silver prices also saw a similar trend, declining by more than 7% and trading at ₹2,09,797 per kg after hitting a low of ₹1,99,643 during the day, indicating high volatility in the market.

Market experts attributed the decline to a combination of rising inflation concerns, higher interest rate expectations and a stronger dollar.

Colin Shah, MD, Kama Jewellery, said the sharp dip in gold prices is a ripple effect of the ongoing tensions in West Asia.

“The disrupted oil supply has led to a rise in the price of crude, which is being perceived as a major inflationary trigger, along with which will drive cautiousness among the central banks. As a result, interest rates are expected to rise and directly impact domestic consumption,” he said.

He added that the strengthening of the U.S. dollar is also pushing investors away from gold.

Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, said gold prices have been under pressure due to rising inflation concerns and expectations of higher interest rates. He noted that escalating geopolitical tensions, including the U.S.-Israel conflict with Iran, have increased fears of prolonged disruptions in global energy supply, further fuelling inflation concerns.

“Markets now expect that sustained high oil prices could force central banks to adopt a more hawkish stance, limiting the appeal of non-yielding assets like gold,” he said.

He added that the shift in rate expectations has been significant, with markets moving from pricing in multiple rate cuts earlier to now factoring in a pause and even a small probability of a rate hike.

Overall, the sharp fall in precious metal prices reflects the impact of global economic conditions, rising interest rate expectations and geopolitical tensions on investor sentiment.