Silver prices jump by Rs 15,200/kg; gold surges Rs 3,700/10 gms amid trade, US-Iran jitters

Domestic gold prices traded positively in the opening trade on Monday amid the US-Iran tensions and President Donald Trump's 15% global tariff announcement. This follows the Supreme Court's Friday decision striking down sweeping tariffs, which increased haven appeal for gold and silver.

The April gold futures on the MCX were trading at Rs 1,60,600 per 10 grams around 9:05 am, jumping by Rs 3,700 or 2.4% from the Friday close. Meanwhile, March Silver contracts were hovering around Rs 2,68,120 per kg, up 6% or Rs 15,200.

The yellow metal prices on COMEX were higher by over 2% or $109, and trading at $5,189.60 an ounce around this time. Silver rate stood around $87.505, witnessing a sharp jump of $5.16 or 6% an ounce.


Gold prices are down by 18% or Rs 36,000 from their peak of Rs 1,93,096 after a stellar rally of 2025 that trickled into January as well. Likewise, silver is also under consolidation, sharply down (40% or Rs 1.68 lakh) from the lifetime high of Rs 4,20,048.

Triggers

The ongoing US-Iran stand-off continues to weigh heavily on global equity markets, a glimpse of which was evident on Thursday when Indian indices came under sharp selling pressure.

On Friday, Trump renewed his warning to Iran, cautioning that military action could follow if Tehran fails to “better negotiate a fair deal.”

According to AFP, the USS Gerald R. Ford aircraft carrier entered the Mediterranean Sea on Friday, following orders from President Donald Trump as part of a broader US military build-up in the Middle East. The carrier was spotted passing through the Strait of Gibraltar, the key gateway between the Atlantic Ocean and the Mediterranean.

In another major development, US' apex court ruled Trump's 'Liberation Day' tariffs illegal, noting he overstepped his authority. Following the decision, Trump signed documents to impose a 10% tariff on imports from all countries, which he said will be "effective almost immediately.". On Saturday, he raised the tariffs to 15%.

Shot-in-the-arm

The bullion prices have been quite volatile in February, forcing MCX and NSE to increase margin requirements. However, they received a shot-in-the-arm last week after MCX and the National Stock Exchange of India (NSE) announced the withdrawal of additional margins on gold and silver futures contracts, effective Thursday, February 19.

The removal of the additional 3% margin on gold and 7% on silver lowers capital requirements for traders, improving capital efficiency, particularly for leveraged participants. Typically, lower margins encourage higher speculative participation, fresh long and short positions, and greater intraday activity, which can improve liquidity in gold and silver futures.

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