Indian bullion-linked exchange traded funds surged on Monday after a major legal development in the United States rattled global trade expectations and currency markets. The US Supreme Court struck down a wide-ranging tariff framework introduced under President Donald Trump, prompting a fall in the US dollar and renewed demand for safe-haven assets such as gold and silver.

The immediate reaction was visible in commodity prices, with both gold and silver advancing in international markets. Indian ETFs tracking these metals mirrored the move. Silver-focused funds led the rally, rising by roughly 6 percent intraday, while gold ETFs registered gains of around 2 percent. The sharper jump in silver reflects its higher volatility and dual role as both a precious metal and an industrial input.

Among the prominent movers, Nippon India Silver ETF climbed over 6 percent, with similar gains seen in Tata Silver ETF, SBI Silver ETF, and ICICI Prudential Silver ETF. Gold ETFs posted comparatively modest increases, with Nippon India ETF Gold BeES, Tata Gold ETF, SBI Gold ETF, and ICICI Prudential Gold ETF each rising just above 2 percent.

The divergence between silver and gold performance is notable. While gold traditionally serves as the primary hedge against financial instability, silver often amplifies price movements due to thinner market depth and stronger sensitivity to speculative flows. In the current episode, the sudden policy shock appears to have triggered momentum buying in silver funds.

At a macro level, the ruling has implications beyond commodities. Tariffs had been a central pillar of protectionist trade policy, and their removal or legal invalidation could reshape expectations around global supply chains, inflation, and cross-border commerce. Markets initially responded by pushing the dollar lower, which mechanically supports bullion prices because gold and silver are priced in dollars globally.