Silver Soars: Global Tariff Tensions Ignite Safe-Haven Demand

Silver prices surged by nearly 5% in the futures market amid soaring global tariff tensions. Silver futures for March delivery shot up on the MCX, reflecting increased demand for safe-haven assets as tensions escalated following tariff hikes and geopolitical concerns involving the US and Iran.

On Monday, silver prices experienced a significant uptick, climbing nearly 5% to reach Rs 2,65,282 per kg in the futures market. This increase in value was prompted by escalating global tariff tensions, which have driven investors towards safe-haven assets.

At the Multi Commodity Exchange (MCX), silver futures slated for March delivery surged by Rs 12,338, equating to a 4.88 percent rise, translating to a price of Rs 2,65,282 per kg. Comparatively, in the international arena, comex silver futures for the March contract advanced by 5.58 percent, or USD 4.5, achieving a price point of USD 86.93 per ounce.

According to Jigar Trivedi, a Senior Research Analyst at Indusind Securities, silver extended its gains for a fourth consecutive session on the back of renewed tariff concerns. Compounding these issues, US President Donald Trump increased a global levy from 10% to 15%, exacerbating the geopolitical landscape as the US faced heightened tension with Iran. Meanwhile, delayed US-India trade talks and the reopening of China's markets following an extended holiday likely contributed to increased trading volumes.

(With inputs from agencies.)