Silver-linked exchange-traded funds (ETFs) witnessed strong buying interest in Monday’s session, tracking a sharp rally in domestic and global silver prices. The surge came as silver futures on MCX and COMEX hit fresh all-time highs, driven by geopolitical uncertainty and rising expectations of US interest rate cuts.
Among the top gainers, Zerodha Silver ETF climbed over 4.2%, emerging as the best performer in the segment. Nippon India Silver ETF rose around 3.9%, while ICICI Prudential Silver ETF gained nearly 3.8% during the session. Aditya Birla Sun Life Silver ETF was also up close to 3.8%, mirroring the broader momentum in silver prices.
The rally in silver ETFs closely followed the sharp jump in silver futures, with MCX silver rising more than 3% to trade near record levels, while COMEX silver surged over 5% to hit an all-time high above $83 per ounce. The gains were supported by escalating geopolitical tensions in the Middle East, particularly unrest in Iran, which has pushed investors toward safe-haven assets.
Additionally, growing expectations of US Federal Reserve rate cuts have further boosted demand for non-yielding assets like silver. Recent US employment data indicated slower job growth, strengthening market bets that the Fed could lower interest rates at least twice this year. A lower interest rate environment typically supports precious metals by reducing the opportunity cost of holding them.
Silver’s dual role as a safe-haven asset and an industrial metal has also added to its appeal. Strong demand expectations from sectors such as renewable energy, electrification and electronics continue to support prices, amplifying the rally across silver-backed ETFs in the domestic market.
With global silver prices scaling new highs, silver ETFs remain in focus as investors react to macroeconomic uncertainty and heightened geopolitical risks.
