Precious metal prices surged sharply on Monday, with silver reaching an all-time high and gold posting a strong recovery, as investors turned to safe-haven assets amid renewed geopolitical uncertainty. Silver futures on the Multi Commodity Exchange crossed the Rs 3 lakh per kilogram mark for the first time, highlighting growing investor demand for the metal.
On the MCX, silver futures jumped by Rs 13,553, or around 4.7 percent, to settle at a record level of Rs 3,01,315 per kilogram. This marked the highest price ever recorded for silver in the domestic futures market. Gold prices also moved higher, rebounding from losses seen in the previous week. Gold futures rose by nearly Rs 3,000, or over 2 percent, to touch a fresh all-time high of around Rs 1,45,500 per 10 grams.
Market participants attributed the rally to escalating global tensions after former US President Donald Trump threatened to impose additional tariffs on several European countries. The comments revived concerns over a potential escalation in trade disputes, which could impact global economic growth and financial markets.
According to media reports, the European Union is preparing retaliatory tariffs worth approximately 93 billion euros in response to the proposed measures. These developments heightened risk aversion among investors, prompting a shift towards assets traditionally considered safe during periods of uncertainty.
Gold and silver, which often benefit from geopolitical and economic stress, saw renewed buying interest after a brief lull last week. During that period, easing tensions between the United States and Iran had reduced demand for safe-haven assets, leading to a temporary pullback in precious metal prices.
Analysts note that silver has been outperforming gold in recent sessions, supported by both investment demand and its industrial use. Silver is widely used in sectors such as electronics, renewable energy, and electric vehicles, which adds an additional layer of demand beyond its role as a store of value.
The surge in gold prices reflects broader concerns about inflation, currency volatility, and global economic stability. With interest rate expectations and geopolitical risks continuing to influence market sentiment, investors are increasingly looking to hedge their portfolios through exposure to precious metals.
Market experts caution that while the long-term outlook for gold and silver remains positive, prices could remain volatile in the near term due to shifting geopolitical developments and macroeconomic signals. Any further escalation in global tensions or uncertainty around trade policies could continue to support prices, while easing risks may trigger short-term corrections.
As global markets respond to evolving political and economic factors, gold and silver are expected to remain in focus for investors seeking stability during periods of heightened uncertainty.
