Silver prices soared to a record high of $94.740 an ounce on the COMEX exchange, driven by investor demand for safe-haven assets amidst escalating US-Europe trade tensions. Gold prices also surged, with MCX gold February futures climbing 1.27% to Rs 1,47,490 per 10 grams, while MCX silver March futures rose 1.75% to Rs 3,15,720 per kg.
Spot gold prices hit $4,671.54 per ounce, slightly down from the previous session’s peak of $4,689.39. The metals experienced a brief pullback following President Trump’s tariff threats against European countries opposing his Greenland policy.
President Trump’s remarks on potentially using force to acquire Greenland and his tariff warnings on European imports have fueled market uncertainty. European leaders, including French President Emmanuel Macron and German Chancellor Friedrich Merz, have expressed concerns and discussed countermeasures.
Market sentiment has been influenced by speculations of the Trump administration challenging the Federal Reserve’s independence, supporting precious metals. Expectations of further US rate cuts have also bolstered bullion prices, with analysts predicting positive trends ahead.
The rally in precious metals reflects a mix of safe-haven buying and industrial demand, particularly for silver in sectors like solar energy, electric vehicles, and electronics. Analysts foresee potential profit-taking in the short term before prices resume an upward trajectory, underpinned by supply constraints and growing industrial usage.
