Safe-haven surge: Silver ETFs soar 6% amid geopolitical stress, oil spike

Silver exchange-traded funds (ETFs) rose up to 6 per cent on Tuesday, May 12, following the escalating geopolitical tensions and rising crude oil prices. 

 

US President Donald Trump on Monday said the ceasefire with Iran is “on life support” after dismissing Tehran’s latest offer to end the conflict, calling it “totally unacceptable.” Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Washington has been putting forward “unreasonable demands” to halt the war, while parliament speaker Mohammad Bagher Ghalibaf warned that Tehran is prepared to respond to any aggression, which he said would leave the US “surprised.”

 

Mirae Asset Silver ETF, SBI Silver ETF, ICICI Prudential Silver ETF, HDFC Silver ETF, Aditya Birla Sun Life Silver ETF, Nippon India Silver ETF, Groww Silver ETF, Edelweiss Silver ETF, Motilal Oswal Silver ETF, and UTI Silver ETF all gained over 5 per cent each. 

 

 

In Gold as well, 360 ONE Gold ETF, DSP Gold ETF, Kotak Gold ETF, Axis Mutual Fund - Axis Gold ETF, The Wealth Company Gold ETF, ICICI Prudential Gold ETF, Tata Gold ETF, and UTI Gold ETF were up in the range of 1-2 per cent. 

 

Last checked, Silver July 3 Futures were trading at ₹281,633 per kg, up over 1.2 per cent from the previous close of ₹287,311. Gold June 5 Futures also gained 0.26 per cent to ₹154,058 per 10 grams. 

 

In April this year, Gold ETFs recorded net inflows of ₹3,040 crore, up ₹2,266 crore in March. However, Silver ETFs saw marginal net outflows of ₹126.72 crore during April. Despite this, category assets under management rose 2.7 per cent month-on-month to ₹81,944 crore due to mark-to-market gains.

 

Umesh Sharma, chief investment officer for debt at The Wealth Company Mutual Fund, said investors continued to maintain a balanced allocation approach.

 

“ETFs and index funds saw strong inflows, while gold ETFs received moderate allocations, reflecting balanced positioning between risk and safety,” he said. 

CHECK Stock Market LIVE Updates

Silver technical outlook

Ponmudi R, chief executive officer at Enrich Money, said MCX Silver opened with a slight gap up and is trading within the ₹280,000–₹282,000 zone, sustaining well above the ascending trendline as bullish momentum builds. 

 

"Immediate resistance stands at ₹284,000–₹285,000; a sustained move above this level could extend the rally toward ₹287,000, with a possible test of ₹290,000 should the bullish momentum persist. On the downside, ₹277,000 acts as immediate support, with ₹275,000 and ₹271,000 as stronger bases should momentum fade. The near-term bias remains cautiously bullish, driven by safe-haven demand and escalating geopolitical tensions," he said.