Gold Prices See Steepest Monthly Fall in March

Chennai: In March, gold prices witnessed the steepest monthly fall since 1975. In the past 53 days, gold was down 25 per cent and silver crashed 50 per cent.

Gold prices made an unprecedented decline of 19.52 per cent in March, marking the sharpest monthly fall since 1975. Gold, which had touched $5608 per ounce in January, is currently trading near $4,263. This is the most severe one-month correction in over five decades. Previous major declines were seen in 1978, 1980, 1983, and during the 2008 financial crisis—but none matched the intensity of the current fall, said Ajay Kedia, MD, Kedia Commodities.

Further, the bullion market has witnessed a sharp and rapid correction, with silver plunging nearly 50 per cent and gold falling around 25 per cent within just 53 days from their January highs.

On MCX, silver touched an all-time high of Rs 4,20,048 and has now dropped to approximately Rs 2,06,360. Meanwhile, gold declined from Rs 1,80,779 to around Rs 1,35,800 during the same period.

The immediate triggers behind this sharp correction are largely macro-driven. A broad-based global sell-off across asset classes—including equities, crypto, and real estate—has led to forced liquidation in bullion. Additionally, the US Fed’s hawkish stance, with reduced expectations of rate cuts and rising talks of potential rate hikes, has strengthened the dollar significantly.

Moreover, heavy ETF outflows and profit booking after record highs have accelerated the decline. This combination of liquidity tightening, a stronger dollar, and risk-off sentiment.

“Looking ahead, the downside may continue in the near term. Gold could test Rs 1,15,000 per 10 gm and $3450–3500 in the international market, while silver may slide toward $50 or around Rs 1,75,000 in MCX. However, historically, after initial war-driven corrections, bullion tends to recover in the later phase, suggesting potential support in the second half,” said Kedia.