DBT Bureau
Pune, 23 March 2026
Precious metals and base metals remained under pressure amid rising global inflation concerns and a hawkish monetary outlook, with gold, silver and copper witnessing long liquidation. According to Kedia Advisory daily report below are the the key support and resistance levels for major commodities.
Gold prices edged lower by 0.32% to settle at ₹1,44,492, extending their recent weakness as rising geopolitical tensions and inflation concerns shifted market expectations toward a more hawkish monetary outlook. Escalation in the Middle East, including increased U.S. military deployment, pushed energy prices higher and raised fears of persistent inflation, prompting markets to price in a higher probability of a rate hike later this year. This has lifted bond yields and strengthened the dollar, both of which have weighed on gold. Despite its safe-haven appeal, gold has struggled, with prices declining consistently since the onset of the conflict. Investors have also been booking profits and reallocating funds to cover losses in other asset classes. Major central banks, including the Federal Reserve, have maintained a cautious stance, signaling that rate cuts will remain on hold until inflation shows clearer signs of easing. In the physical market, discounts in India narrowed slightly to around $75 per ounce amid some festive demand, though overall buying remained subdued. In contrast, premiums in China softened as demand cooled. Central bank purchases also slowed, with net buying at 5 tonnes in January, although long-term accumulation trends remain intact. Technically, the market is under long liquidation, with open interest falling by 6.97% to 5,992 while prices declined ₹462. Immediate support is seen at ₹1,42,435, with further downside toward ₹1,40,375. Resistance is placed at ₹1,47,505, and a breakout above this level could push prices toward ₹1,50,515.
Silver prices declined by 2.03% to settle at ₹2,26,772, pressured by rising inflation concerns driven by surging energy prices amid escalating Middle East tensions. Higher oil prices have intensified worries about persistent inflation, prompting investors to shift toward the dollar and U.S. Treasuries, which in turn weighed on precious metals. The broader macro environment has also turned less supportive. Major central banks, including the Federal Reserve, ECB, BOJ, and BOE, have maintained interest rates but signaled a more hawkish stance, indicating that rate cuts may be delayed until inflation shows clear signs of easing. Markets are now pushing expectations for U.S. rate cuts further out, while also pricing in potential rate hikes from European central banks this year. This shift in outlook has reduced the appeal of non-yielding assets like silver. On the economic front, U.S. labor data remained resilient, with initial jobless claims falling to 205,000, reinforcing the view of a stable economy and supporting the case for tighter policy. Meanwhile, silver holdings in London vaults declined by 2.4% to 27,065 tonnes, indicating some tightening in physical inventories. Technically, the market is witnessing long liquidation, with open interest dropping by 1.45% to 6,222 while prices fell sharply. Immediate support is seen at ₹2,20,050, with further downside toward ₹2,13,330. Resistance is placed at ₹2,36,745, and a move above this level could push prices toward ₹2,46,720.
Copper prices edged lower by 0.36% to settle at ₹1,108, as rising oil prices and ongoing tensions in the Middle East raised concerns about inflation and global growth. The spike in energy costs has reinforced a more cautious stance from central banks, with policymakers signaling that inflation risks may delay or even reverse expectations of rate cuts. This has weighed on sentiment across the base metals complex. On the supply side, inventories remain a mixed factor. Stocks in LME warehouses have climbed to 334,100 tonnes, their highest level since 2019, indicating ample near-term availability and putting pressure on prices. However, inventories tracked by the Shanghai Futures Exchange declined by 5.2% over the past week, offering some support. Fundamentally, the outlook remains constructive. Stronger-than-expected factory data from China and post-Lunar New Year restocking, particularly from the power sector, are expected to support demand. Major institutions continue to hold a bullish medium-term view, citing tightening supply-demand dynamics and a widening market deficit in the coming years. Trade data shows China’s copper imports declined 16.1% year-on-year in early 2026, while concentrate imports rose, reflecting shifting procurement patterns. Technically, the market is under long liquidation, with open interest falling by 11.87% to 10,494 while prices slipped ₹3.95. Immediate support is seen at ₹1,093.1, with further downside toward ₹1,078. Resistance is placed at ₹1,128.8, and a move above this could push prices toward ₹1,149.4.
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