Silver Tops ₹3 Lakh Mark amid US Sanctions Threat

Chennai: Silver prices in the domestic market crossed the ₹3 lakh mark on Monday, while gold touched a fresh record amid renewed global trade tensions triggered by tariff threats from the United States and fears of retaliation by the European Union.

Silver traded at ₹3,02,600 per kg, up from the previous close of ₹2,92,600 per kg. Gold gained ₹1,900 to trade at ₹1,48,100 per 10 grams.

The rally mirrored trends in international markets, where silver surged more than 4 per cent to hit a fresh record near $94 per ounce. Gold rose over 1 per cent to breach $4,660 per ounce.

Safe-haven demand strengthened amid escalating trade tensions after US President Donald Trump threatened fresh tariffs on several European countries, prompting discussions on possible countermeasures by European leaders. Trump reportedly warned of imposing an additional 10 per cent tariff on imports from eight European nations, including Germany, France and the United Kingdom, potentially raising total tariffs to 25 per cent by June.

“Although silver faced pressure in recent sessions after the US administration excluded critical minerals from new tariffs, underlying fundamentals remain supportive. Structural supply deficits have tightened the physical market, with repeated squeezes in the London market over the past year. Combined with silver’s strategic role in green energy and electronics, these factors continue to support strong investor interest,” said Ajay Kedia, managing director of Kedia Commodities.

Market participants said continued geopolitical risks, concerns over political stability and uncertainty surrounding US monetary policy independence have further reinforced gold’s appeal as a hedge.