Silver Price Surges To Rs 1,150 Per 10 Grams - Know What’s Driving The Rally

The price of physical silver surged to a record high on July 13, 2025. The precious metal traded at Rs 1,150 per 10 gram according to the Goodreturns website. This rise in the price of physical silver has followed a surge in silver prices on the MCX.  On June 11, 2025, silver prices surged to a record high of Rs 1,11,750 per kg, crossing the Rs 1.11 lakh per kilogram milestone. September delivery contracts rose Rs 1,762 (1.61 per cent) to Rs 1,10,885 in a trading volume of 19,114 lots.

Globally, too spot silver prices hit a record high earlier this week as the price of the metal surged to $38.74 per troy ounce. So far, in 2025, silver prices have surged by $9.53 or 32.7 per cent.

What’s Fuelling The Rally In Silver

The price of silver soared amid a spike in investor demand amid escalating trade tensions and economic uncertainty.  The investor demand spike could be attributed to a rise in the overall demand for safe-haven assets amid volatility. 

In the past week, US President Donald Trump made a slew of tariff related announcements. One July 12, 2025, Trump imposed a 30 per cent tariff on goods imported from the European Union and Mexico. Trump added that the tariff will come into effect from August 1, 2025. He also cited concerns regarding drug trafficking and long-drawn imbalances between the US and the EU as reasons for the steep tariffs.

On the other hand, Trump also announced tariffs on 35 per cent of goods imported from Canada. The US President also levied 50 per cent tariffs on Brazilian goods imported to the US. He added that the date from which these tariffs will be imposed will be August 1, 2025. Trump has also announced tariffs ranging from 15-20 per cent on other trading partners of the US.

Other reasons for the surge in silver prices could be a dovish stance from the US Federal Reserve. According to a Reuters report, the markets are expecting the US Fed to be more aggressive in cutting financial rates. The report also mentioned that the market expects Fed Chair Jerome Powell will be replaced by someone more dovish. Since the price of silver is linked to fluctuations in the rupee-dollar trade, the Federal Reserve's policy decisions are expected to affect the dollar's strength and, consequently, affect silver prices.

Another factor for the rise in silver prices is the expectation that the rally in silver prices will sustain amid global momentum. As investors across the globe react to the widespread uncertainty caused by the tariff announcements, silver has managed to retain its status as a safe haven asset amid volatility.