Spot Silver shot up to a new all-time high near $110/oz. on Monday, as persistent geopolitical tensions and broader economic uncertainty prompted investors to flock to safe-haven assets.
The latest catalyst was the crisis of confidence in the US administration and US assets.
Last week, US President Donald Trump backed away from threats to impose tariffs as leverage to take control of Greenland. Trump also said that he had secured permanent US access to Greenland in a deal with NATO, but details were not provided.
This past weekend, the US President threatened a 100% tariff on Canada in case the country followed through on a trade deal with China. He claimed Canada could serve as a transit point for Chinese goods entering the US.
Trump also said the US would impose a 200% tariff on French wines and champagnes – an obvious effort to pressure French President Emmanuel Macron to join his Board of Peace initiative.
In addition to geopolitical factors, monetary policy expectations continued to support Silver. Investors are currently expecting at least two rate cuts by the Federal Reserve this year, starting as early as June.
Lower interest rates tend to reduce the opportunity cost of holding Silver, which pays no interest.
Spot Silver was last up 5.52% on the day to trade at $109.00 per troy ounce.
Silver’s rally has also been driven by a historic short squeeze, robust retail demand and China’s tightening export controls.
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