Silver price (XAG/USD) is trading in the positive territory near $92.65 during Asian trading hours on Monday. The white metal is set to hit a new record high as US President Donald Trump’s tariff threats boost safe haven flows. US markets are closed for the Martin Luther King Jr. Day holiday on Monday.
Trump said on Saturday that he would impose additional 10% tariffs on imports from eight European countries, including Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom, that opposed his plan to seize Greenland, according to Bloomberg.
European leaders are scheduled to hold an emergency meeting in the coming days to explore possible countermeasures. Renewed fears of European retaliation, which could lead to a trade war, are providing some support for the precious metal.
Additionally, strong industrial demand, especially in solar panels, electric vehicles, and AI-related infrastructure, may contribute to silver’s rally. Industrial applications account for more than half of global silver demand and continue to reach record levels.
On the other hand, growing expectations that the US Federal Reserve will pause its monetary easing campaign later this month could lift the US dollar and create headwinds for US dollar-denominated commodity prices. Morgan Stanley analysts updated their forecasts for 2026, anticipating one rate cut in June and another in September, instead of January and April.
Frequently asked questions about silver
Silver is a precious metal that is widely traded among investors. It has been used historically as a store of value and medium of exchange. Although less popular than gold, traders may turn to silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during periods of high inflation. Investors can buy physical silver, in the form of coins or bullion, or trade it through instruments such as exchange-traded funds, which track its price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession could cause the price of silver to rise due to its safe-haven status, although to a lesser extent than the price of gold. As a non-yielding asset, silver tends to rise as interest rates fall. Its movements also depend on how the US dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong dollar tends to keep the price of silver at bay, while a weak dollar is likely to push prices higher. Other factors such as investment demand, mining supplies – silver is more plentiful than gold – and recycling rates can also influence prices.
Silver is widely used in industry, especially in sectors such as electronics or solar energy, as it has one of the highest electrical conductivity of all metals – more than copper and gold. A rise in demand can cause prices to rise, while a fall tends to bring them down. Dynamics in the economies of the United States, China and India can also contribute to price fluctuations: for the United States, and especially China, its large industrial sectors use silver in various processes; In India, consumer demand for the precious metal used in jewelery also plays a major role in determining prices.
Silver prices tend to follow gold movements. When gold prices rise, silver usually follows suit, as its status as a safe haven asset is similar. The gold/silver ratio, which shows how many ounces of silver are needed to equal the value of one ounce of gold, may help determine the relative valuation between the two metals. Some investors may consider a high ratio to be an indication that silver is undervalued, or that gold is undervalued. Conversely, a low ratio may indicate that gold is undervalued compared to silver.
