MCX Gold Silver Crash Dollar High Oil Boom Fuels Inflation Fears

Monday's trading in Mumbai turned grim for gold and silver investors as Middle East jitters failed to ignite a rally. A fortified dollar index and climbing bond yields overwhelmed safe-haven narratives, amid fresh inflation threats from oil's explosive gains.

MCX April gold hit an intraday trough of 159,826 rupees/10g; May silver reached 260,743 rupees/kg. By 12:18 PM, gold April 2 expiry lingered at 160,678 rupees (-881 or -0.55%), silver May 5 at 264,907 rupees (-3,378 or -1.26%).

US dollar index surged to three-month peak 99.34 (+0.36% intraday), deterring foreign currency buyers. 10-year Treasury yields at one-month highs raised non-interest bearing metals' carry costs.

Global crude prices rocketed 27% to 116 dollars/barrel, breaching 100 dollars post-2022 on Middle East supply scares via Hormuz.

Fed's March 18 meeting now leans toward status quo on rates, with June unchanged odds exceeding 51% (vs. <43% prior). Domestic gold support at 148,000 rupees, resistance 153,000.

Comex gold firms near 5,000 dollars on heavy buying; hold above 5,400-5,600 dollars eyes all-time highs. Silver's intermediate to long-term bias remains upbeat amid volatile geopolitics.