Silver, gold ETFs jump up to 10% as metal prices gain amid tariff tensions

Prices of gold and silver exchange-traded funds (ETFs) advanced on Monday, tracking gains in the underlying metal prices amid rising tariff tensions.

 

Stocks, along with commodity prices, rose after the US Supreme Court struck down broad reciprocal tariffs imposed earlier by US President Donald Trump. Later, he imposed a fresh 15 per cent global tariff on imports from all countries. 

 

Silver ETFs saw a rally on Monday, with HDFC Silver ETF rising 9.9 per cent, Kotak Silver ETF gaining 7.4 per cent, Nippon India Silver ETF and ICICI Prudential Silver ETF both climbing 9 per cent, SBI Silver ETF advancing 10 per cent, and Axis Silver ETF jumping 10 per cent.

 

 

Gold ETFs also posted strong gains, with Aditya Birla Sun Life Gold ETF rising 2.7 per cent, Axis Gold ETF up 3 per cent and Tata Gold ETF jumping 6 per cent. Nippon India Gold ETF gained 3.5 per cent, while LIC MF Gold ETF rose 2.5 per cent and DSP Gold ETF added nearly 2 per cent.

 

The ETFs were taking cues from gains in gold and silver prices. Multi-Commodity Exchange (MCX) gold March 5 futures are up 1.68 per cent to ₹1,57,200 on Monday, while the March contracts for MCX silver rose 5.36 per cent to ₹2,66,508. In February so far, MCX spot silver has fallen 25 per cent and gold has fallen nearly 6 per cent, according to data compiled by Bloomberg.

Silver and Gold Outlook

Market participants will closely watch key economic indicators, including the US Producer Price Index (PPI), consumer confidence data, weekly initial jobless claims and the People's Bank of China's lending rate decision, for cues on the direction of precious metals. 

 

Analysts said strong buying interest in MCX Gold is visible in the ₹1,45,000–₹1,50,000 support zone. A sustained hold above this base, followed by a breakout above ₹1,60,800, could revive upside momentum toward ₹1,65,000-₹1,75,000, Ponmudi R, Chief Executive Officer of Enrich Money, said. He noted that the medium-term outlook remains positive despite ongoing volatility.

 

On MCX Silver, he said futures are currently trading near the ₹2,60,000-₹2,80,000 range after a phase of consolidation in the previous session. Strong buying interest is seen in the ₹2,25,000-₹2,35,000 support band, which coincides with prior swing lows and long-term structural support. A sustained hold above this zone, followed by a decisive recovery, could trigger fresh upside toward ₹3,00,000-₹3,25,000.

 

Last week, silver and gold prices rose after MCX and the National Stock Exchange (NSE) Clearing announced the withdrawal of additional margins on gold and silver futures contracts, effective February 19. MCX said it would remove the extra 3 per cent margin on all gold futures contracts and 7 per cent on all silver futures contracts. NSE Clearing issued a similar circular, advising members to adjust their positions accordingly. 

 

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(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)