Silver surges past ₹3L/kg for first time ever
What's the story
Silver prices have hit a new high on the Multi-Commodity Exchange (MCX), crossing the ₹3 lakh per kilogram mark for the first time. The precious metal's value touched ₹3,01,315 per kg today. The surge comes amid rising geopolitical tensions and fears of potential trade wars. Donald Trump's threats of a flat 10% tariff on European countries opposing the US plan to purchase Greenland have fueled these concerns.
Tariff implications
Trump's tariff threats and their impact on silver prices
Trump has threatened to impose tariffs on European countries resisting his plan to buy Greenland. The countries include France, Germany, and the United Kingdom. The 10% tax will be raised to 25% by June. These developments have led to an increase in demand for precious metals such as silver and gold. At the time of writing, silver was trading at ₹3,00,479 per kg on MCX with a rise of around 4%.
Market analysis
CLSA's perspective on silver and gold prices
Laurence Balanco of CLSA told CNBC-TV18 that both gold and silver have started to accelerate their advance. He said they are cautious about silver as it has already crossed its upside target. However, they still see potential in gold with an unmet measured target of $5,100 to $5,200. Balanco also highlighted aluminium as a key breakout among base metals and copper breaking out of its trading range.
Global trends
International silver prices also witness a surge
The rise in silver prices isn't limited to India. Globally, spot silver has gained 4.4% to $93.85 an ounce after hitting an all-time high of $94.08 earlier today. The increase is driven by Trump's tariff threats, which have caused US stock futures and the dollar to drop, prompting investors to turn toward safe-haven assets like gold and yen in a widespread risk-averse market reaction.