Silver prices rallied sharply on Monday, climbing nearly 5 percent in the domestic futures market as renewed global trade tensions strengthened demand for safe haven assets.
On the Multi Commodity Exchange, silver futures for March delivery surged by Rs 12,338, or 4.88 percent, to Rs 2,65,282 per kg. The contract recorded trading activity in 6,024 lots, reflecting strong participation from market participants.
MCX Silver Futures Extend Gains for Fourth Session
The sharp rise in prices marked the fourth consecutive session of gains for silver. Market participants increased exposure to precious metals amid growing global uncertainty.In the international market, Comex silver futures for the March contract advanced by 5.58 percent, or USD 4.5, to USD 86.93 per ounce. The global momentum mirrored domestic trends, with investors turning to silver as a hedge against heightened geopolitical and trade risks.
According to Jigar Trivedi, Senior Research Analyst at Indusind Securities, silver extended gains above 5 percent as renewed trade tensions boosted demand for safe haven assets.
Trade Policy Developments Fuel Safe Haven Demand
The rally followed fresh developments in US trade policy. US President Donald Trump raised a global levy from 10 percent to 15 percent after the US Supreme Court rejected his reciprocal tariffs. The move added another layer of uncertainty to global trade dynamics.Amid these developments, India delayed talks aimed at finalising an interim deal with Washington, adding to market caution.
Investors also weighed geopolitical risks linked to stalled nuclear negotiations with Iran. Concerns persisted that the Trump administration could initiate military action, although diplomats are scheduled to reconvene in Geneva on Thursday.
Higher Trading Volumes Expected This Week
Market participants are also anticipating increased activity in the metals segment, with Chinese markets reopening after a prolonged holiday. Analysts indicated that silver and other metals may witness elevated trading volumes in the coming sessions.The combination of trade tensions, geopolitical uncertainty, and global market movements has reinforced silver’s appeal, pushing prices to multi session highs in both domestic and international markets.
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