Silver surges nearly 5% on MCX as tariff tensions lift safe-haven demand

Silver prices rallied sharply on Monday, climbing almost 5 per cent in the domestic futures market as escalating global tariff tensions and geopolitical uncertainty drove investors towards safe-haven assets.

On the Multi Commodity Exchange (MCX), silver contracts for March delivery jumped Rs 12,338, or 4.88 per cent, to trade at Rs 2,65,282 per kilogram in 6,024 lots.

The uptrend was mirrored in international markets. On Comex, silver futures for the March contract advanced 5.58 per cent, rising by $4.5 to $86.93 per ounce.

Market analysts attributed the rally to renewed trade frictions and heightened global uncertainty. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said silver had extended gains for a fourth straight session as investors sought refuge in precious metals.

Sentiment was influenced by developments in the United States, where President Donald Trump increased a global levy from 10 per cent to 15 per cent after the US Supreme Court rejected his proposed “reciprocal” tariffs. The move has added fresh strain to international trade relations.

Against this backdrop, India has postponed discussions aimed at securing an interim trade arrangement with Washington.

Investors are also monitoring geopolitical risks, including concerns that the Trump administration could consider military action against Iran amid stalled nuclear negotiations. Diplomats from both sides are scheduled to resume talks in Geneva later this week.

Analysts expect trading activity in silver and other metals to remain elevated, particularly as Chinese markets reopen following an extended holiday, potentially adding further momentum to price movements.

With PTI inputs