Gold, Silver ETFs surge up to 17% as US-Iran tensions and tariff ruling boost safe-haven demand

Gold and silver ETFs surged up to 17% on Monday as escalating US-Iran tensions and President Donald Trump’s move to impose a 15% global tariff — after the Supreme Court struck down his earlier sweeping levies — boosted safe-haven demand for the precious metals.

Groww Silver ETF led the gains, jumping about 17% to hit an intraday high of Rs 28.22. Mirae Asset Silver ETF, HDFC Silver ETF, SBI Silver ETF, and Axis Silver ETF rose around 10% each, while other funds advanced 8–9% during the session.

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Gold ETFs gained up to 6%. Tata Gold ETF jumped 6% to hit the day’s high of Rs 15.9. UTI Gold ETF rallied 5% while the other gold-based ETFs rallied between 2% to 4%.

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 268120 per kg, up 6% or Rs 15,200.

The yellow metal prices on COMEX were higher by over 2% or $109, and were trading at $5,189.60 an ounce around this time. Silver rate stood around $87.505, witnessing a sharp jump of $5.16 or 6.27% an ounce.

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, the 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%.

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Gold prices are down by 18% or Rs 36,000 from their peak of Rs 1,93,096/10 gms 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/kg.

Expert Take

Abhishek Bhilwaria, BhilwariaMF, AMFI registered MFD shared with ETMutualFunds that gold and silver ETF prices are in a consolidation phase following a period of extreme volatility, with gold showing relative strength while silver attempts to stabilize after a sharp 20% correction from its February 1 peaks.

For investors, Bhilwaria recommends a disciplined, staggered accumulation strategy using Systematic Investment Plans (SIPs) rather than attempting to time a market bottom, as both metals are expected to remain volatile but structurally supported by geopolitical tensions and industrial demand in the "green energy" sector.

"A balanced allocation of roughly 10–15% for gold and a tactical 5–10% for silver is often suggested to hedge against inflation and manage overall portfolio risk," he added.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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