The Indian bullion market witnessed a sharp correction on Wednesday, March 18, 2026, as gold prices on the Multi Commodity Exchange (MCX) slumped by over ₹700 to settle at ₹1.55 lakh per 10 grams. This downward movement was mirrored in the silver market, where prices tanked by 1 percent, reflecting a cautious shift in global investor sentiment ahead of the high-stakes US Federal Reserve policy meeting. The decline in precious metals is primarily attributed to a strengthening US Dollar Index and rising Treasury yields, as market participants recalibrate their expectations regarding the pace of interest rate cuts in light of persistent global inflation and ongoing geopolitical tensions. Analysts suggest that the “pre-Fed jitters” are prompting traders to lock in profits after a historic bull run that saw gold reach record highs earlier this month, driven by safe-haven buying amidst the Middle East crisis.
The technical outlook for bullion remains sensitive to the Federal Open Market Committee (FOMC) commentary, with the market closely watching for any hawkish signals that could further bolster the greenback. While the long-term fundamentals for gold remain supported by central bank buying and regional instability, the immediate price action is being dictated by “risk-off” flows into liquid cash assets. On the domestic front, the sharp drop in MCX rates has provided a temporary window of relief for physical buyers and jewelers who were previously sidelined by skyrocketing prices. However, with the Indian Rupee hovering near record lows against the dollar, the downside for landed gold costs remains somewhat cushioned. As the Fed prepares to announce its decision, volatility is expected to remain elevated, with support for gold seen at the ₹1.54 lakh level, while silver faces immediate resistance near its recent peaks as industrial demand outlook stays clouded by high energy costs.