In the current year, silver prices had reached the peak level of Rs 4,20,048. After that such a decline was seen that the record of more than 40 years was broken. Within a few days, silver prices fell by about Rs 1.94 lakh i.e. 46 percent from the peak and reached a lower level of Rs 2,25,805 per kg on February 2. Once again a rise in silver prices has been seen.
There has been a sharp rise in silver prices due to new global uncertainty after the increasing tension between US-Iran and the US Supreme Court’s move to end President Donald Trump’s tariffs. The special thing is that on February 2 i.e. in about 3 weeks, the price of silver has seen an increase of more than Rs 43 thousand. This means that silver has given returns of more than 19 percent to investors in the futures market.
Analysts believe that the recovery may increase further. Domestic silver prices on Monday rose by 6%, or about Rs 16,000, from Friday’s close due to increased safe-haven demand amid tensions in West Asia and new tariff uncertainty. Let us also tell you what are those 4 reasons, which can further increase the prices of silver.
Uncertainty regarding tariffs
Although the US Supreme Court’s decision to overturn Trump’s Liberation Day tariffs received a positive response, the speed with which the President imposed 15 percent global tariffs shows that the administration continues to rely on trade tariffs as a negotiating tool. The first major reaction has come from the European Commission, which has demanded that the United States abide by the terms of the EU-US trade deal signed last year. According to a Reuters report, the Commission, which negotiates trade policy on behalf of 27 EU member states, said Washington should provide “complete clarity” about the steps to be taken after the court decision.
India has also said that it is studying the impact of this decision. The Times of India, quoting government sources, said that both India and the United States have rescheduled an important meeting between their chief trade negotiators, which was to be held in Washington this week. This meeting was to finalize the legal text of the proposed interim bilateral trade agreement. The Indian delegation, led by Chief Negotiator Darpan Jain, was scheduled to go to the US Capitol for talks with US Trade Representative Jamieson Greer.
Dr. Renisha Chainani, head of research at Augmont, said in an ET report that confusion and possible disruption in existing trade deals have unsettled the market, even if Trump has announced an alternative tariff. He further said that due to the weakness in the dollar, precious metals have become cheaper for foreign buyers and the safe-haven flow has strengthened. The dollar index has fallen 0.34 percent to 97.46 against the basket of six major currencies.
geo political risk
The fluctuating tension between the US and Iran over the nuclear deal has increased the safe-haven appeal of gold and silver. On Friday, Trump issued a new warning, warning Iran about possible military action. However, tensions eased after reports on Sunday suggested some progress toward a possible agreement. Iranian President Masoud Pezeshkian said that nuclear talks with America have shown good signs.
AFP reported that the USS Gerald R. The Ford aircraft carrier entered the Mediterranean Sea on Friday, ordered by US President Donald Trump as part of a major military buildup in the Middle East. The carrier was seen passing through the Strait of Gibraltar, which connects the Atlantic Ocean and the Mediterranean Sea.
Chainani said in a media report that rising tensions between the US and Iran, including nuclear talks and President Donald Trump’s warnings over possible military action, have reinvigorated the geopolitical risk premium in markets. Such risk-off dynamics add to gold’s safe-haven appeal as well as silver’s volatility.
Weak US GDP and macro signals
Augmont analysts said US economic data showed lower-than-expected Q4 GDP growth of about 1.4 percent year-on-year, which is much lower than expected, indicating slowing down of economic growth. He said that at the same time, inflation persists, due to which policy makers are dependent on data. The weak growth outlook strengthens expectations of future Federal Reserve rate cuts, which is good for gold and silver. Low interest rates generally push down real yields and increase the appeal of non-yielding assets.
Dollar movement and Fed rate expectations
The dollar has an inverse relationship with gold, and its recent weakness has increased the appeal of bullion. Chainani further said in the media report that traders are pricing in the possibility of a rate cut later this year as growth slows and inflation gradually eases – a backdrop that typically favors the precious metals.
silver price outlook
Commodity and currency expert Anuj Gupta said that despite the sharp correction, the outlook for silver remains good. Silver prices on MCX are still up 13 percent in 2026, which shows an increase of Rs 30,200 per kg so far this year. Metal has also reduced the losses incurred in February by 9 percent. Gupta expects that in the medium term, COMEX silver will trade in the range of $ 95100, while MCX silver can go up to Rs 3,00,0003,10,000 per kg.