Gold & Silver Update: Prices Steady Near ₹1.56 Lakh Amid Fed & Iran Conflict

As of midday Wednesday, March 18, 2026, the Indian bullion market is witnessing a “tug-of-war” between safe-haven demand and a dominating US Dollar. While the Iran-Israel conflict continues to push investors toward gold, the resulting surge in energy prices has fueled inflation concerns, leading many to believe the Federal Reserve will maintain a “hawkish hold” on interest rates tonight.

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Live Market Rates (Retail Indicative)

Prices vary slightly across cities due to local taxes and making charges.

The Geopolitical Ripple: Strait of Hormuz & The Yuan

The closure of the Strait of Hormuz has become the primary anchor for global inflation. With 20% of global oil supplies effectively blocked, Brent crude has remained perched above $100/barrel.

• The Currency Pivot: Iran has proposed allowing tankers through the strait only if trade is settled in Chinese Yuan.

• The Impact: Analysts at Augmont suggest this move could eventually weaken the dollar, making gold a more attractive long-term hedge against fiat currency volatility.

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Analyst Outlook: Support & Resistance Levels

According to the latest Augmont Bullion Report, the short-term bias for precious metals remains slightly bearish due to high real yields.

• Gold: Strong support is seen at $4,850 (approx. ₹1.50 Lakh). A break above $5,250 would be needed to signal a fresh bull run.

• Silver: Currently hovering below the $80 level. If it falls below **$77 (₹2.47 Lakh)**, it could trigger further profit-booking toward $70 (₹2.30 Lakh).

Reality Check

While headlines scream “recovery,” it is important to note that Gold is currently nursing a sharp fall from its record high of $5,600/oz set in late January. The current stability is “fragile” because it depends entirely on the Federal Reserve’s tone tonight. If Chair Jerome Powell suggests that rate cuts are off the table for the rest of 2026 due to “energy-fueled inflation,” we could see a swift dip in gold prices as the dollar gains even more strength.

The Loopholes

The news mentions a “surge” in silver by 0.23%. In fact, this is a “Perspective Loophole”—in a market as volatile as 2026, a 0.23% move is essentially flat trading. Therefore, while technically an increase, it does not represent a trend reversal. Still, the “Yuan Trade Loophole” remains; even if Iran settles oil in Yuan, the US Dollar still dominates 80% of global trade. This means the impact on gold prices from de-dollarization is a multi-year theme, not a “today” price driver.

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What This Means for You

If you are looking to buy jewelry for the upcoming Chaitra Navratri (starting tomorrow, March 19), buy today. First, realize that city-wise rates in Delhi (₹15,823/g) and Chennai (₹15,982/g) are already showing a premium due to festive demand.

Then, if you are an investor, understand that you should wait for the Fed announcement tonight before making large lump-sum entries. Finally, understand that Silver is currently outperforming Gold in terms of recovery percentage; if industrial demand for “green tech” holds steady despite the conflict, silver may offer better short-term gains.

What’s Next

Expect extreme volatility in the MCX late-night session (after 11:30 PM IST) as the Fed release goes live. Then, look for retail gold rates to adjust by 8:00 AM tomorrow, potentially incorporating a “festive premium” for the first day of Navratri. Finally, expect Gold to test the ₹1.60 Lakh mark again if the Middle East tensions escalate over the weekend.

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End…

The post Gold & Silver Update: Prices Steady Near ₹1.56 Lakh Amid Fed & Iran Conflict first appeared on Business League.