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Gold rose 1.8% to $4,688.50 per ounce and silver gained 4.57% to $74.47 per ounce on COMEX, rebounding from a decline. Analysts warn of ongoing volatility.
By Anshul March 20, 2026, 7:42:10 AM IST (Published)
3 Min Read
Gold and silver prices traded higher in early Friday (March 20) session, recovering after a steep decline in the previous session, as global cues turned mixed and investors reassessed inflation and interest rate expectations.
On COMEX, gold rose 1.8% to $4,688.50 per ounce, after touching an intraday high of $4,701.50 an ounce. Silver outperformed, gaining 4.57% to $74.47 per ounce, with prices nearing session highs of $74.62 an ounce.
The rebound follows a sharp correction on Thursday (Mrach 19), when bullion prices fell significantly in both global and domestic markets.
In New Delhi, silver had plunged nearly 7% to ₹2.38 lakh per kg, while gold dropped over 4% to ₹1.53 lakh per 10 grams, according to the All India Sarafa Association.
The fall extended losses from record highs seen in late January.
Why prices are rebounding
Friday’s uptick in precious metals comes amid easing crude oil prices and shifting geopolitical signals. Oil prices declined after major European nations and Japan signalled willingness to support efforts to secure shipping routes through the Strait of Hormuz, a key global energy corridor.
At the same time, the United States indicated possible measures to boost supply, including easing restrictions on Iranian oil and considering releases from strategic reserves.
Lower oil prices can temper inflation expectations at the margin, offering some support to gold and silver, which had come under pressure as rising crude stoked inflation concerns earlier this week.
Macro pressures still intact
Despite the rebound, the broader trend remains cautious. Analysts attribute the recent volatility in bullion to persistent macroeconomic headwinds:
Inflation concerns: Elevated crude prices earlier had reinforced fears of energy-driven inflation.
Hawkish central banks: Signals from major central banks, particularly the US Federal Reserve and the Bank of Japan, have kept interest rate expectations firm.
Rising bond yields: Higher yields reduce the appeal of non-yielding assets like gold.
ETF outflows: Continued selling in gold-backed exchange-traded funds has added to downside pressure.
Federal Reserve Chair Jerome Powell recently acknowledged that higher oil prices could add to inflationary pressures, while reiterating a data-dependent approach to policy.
Volatility likely to persist
Market participants are now tracking upcoming policy cues from the Bank of England and the European Central Bank, along with developments in global energy markets and geopolitical tensions.
Analysts say the near-term outlook for precious metals remains volatile, with prices likely to react sharply to shifts in interest rate expectations, inflation trends, and geopolitical developments.
While Friday’s (March 20's) recovery offers some relief after the sharp correction, bullion markets remain sensitive to macro signals, suggesting that directional clarity may take time to emerge.
Note To Readers
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.
