Silver prices surged nearly 6% on the Multi Commodity Exchange (MCX) on Monday, tracking strong gains in global markets as renewed tariff tensions and rising geopolitical uncertainty lifted safe-haven demand.
Internationally, silver climbed around 2% to trade above $86 per ounce, extending gains for a fourth straight session. The rally was triggered after US President Donald Trump raised a global levy from 10% to 15% following the US Supreme Court’s rejection of his “reciprocal” tariffs. The move reignited concerns over global trade stability and growth prospects.
Further adding to uncertainty, Europe’s trade chief indicated that ratification of a trade agreement with the US could be suspended, while India delayed talks aimed at finalizing an interim deal with Washington. Although the US Trade Representative clarified that existing trade arrangements with major partners such as China, the European Union, Japan and South Korea would remain intact, markets reacted to the broader risk sentiment.
Geopolitical worries also weighed on investor mood, with concerns that the US administration could consider military action against Iran amid stalled nuclear negotiations. Diplomatic talks are expected to resume in Geneva later this week.
The rise in global prices translated into sharp gains on MCX, with silver futures rallying as investors sought exposure to precious metals amid heightened volatility. Additionally, higher trading volumes are expected this week as Chinese markets reopen after an extended holiday, potentially amplifying price movements in base and precious metals.