During Monday’s Asian trading hours, the price of silver (XAG/USD) remains in positive territory near $92.65. The white metal is set to hit a fresh record high as US President Donald Trump’s tariff threats boost gold flows into the protected haven. US markets are closed due to the Martin Luther King Jr. holiday on Monday.
Trump said Saturday that he would impose an additional 10% import tariffs on eight European countries, including Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom (UK), which, according to Bloomberg, oppose his plan to seize Greenland.
European leaders are due to hold an emergency meeting in the coming days to consider possible countermeasures. Renewed fears of retaliation from Europe that could lead to a trade war provide some support for the precious metal.
Additionally, powerful industrial demand, especially for solar panels, electric vehicles (EVs) and artificial intelligence infrastructure, could drive Silver prices higher. Industrial uses account for more than half of global silver demand and continue to reach record levels.
On the other hand, rising expectations that the US Federal Reserve (Fed) will pause its monetary easing campaign at the end of this month could push up the US dollar (USD) and negatively impact the price of USD-denominated goods. Morgan Stanley analysts updated their 2026 forecast, forecasting one rate cut in June and another in September, instead of January and April.
Silver FAQs
Silver is a precious metal that investors like to trade. Historically, it has been used as a store of value and a medium of exchange. Although less popular than gold, investors 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 coins or bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can fluctuate due to many factors. Geopolitical instability or fear of a deep recession may push silver prices higher due to its safe-haven status, although to a lesser extent than gold. As a non-yielding asset, silver tends to rise at lower interest rates. Its movements also depend on the behavior of the US dollar (USD) when the asset is priced in dollars (XAG/USD). A powerful dollar tends to keep the price of silver at bay, while a weaker dollar will likely push prices higher. Other factors such as investment demand, mining supply – there is much more silver than gold – and recycling rates can also influence prices.
Silver is widely used in industry, especially in sectors such as electronics and solar energy, because it has one of the highest electrical conductivities of all metals – greater than copper and gold. An enhance in demand can enhance prices, while a decrease usually lowers them. The dynamics of the economies of the United States, China and India can also contribute to price fluctuations: in the case of the United States and especially China, vast industrial sectors utilize silver in various processes; in India, consumer demand for precious metals for jewelry production also plays a key role in pricing.
Silver prices usually follow the movements of gold. When gold prices rise, silver tends to follow suit because their status as safe-haven assets is similar. The gold-to-silver ratio, which shows the number of ounces of silver needed to equal the value of one ounce of gold, can lend a hand determine the relative valuation of the two metals. Some investors may view a high ratio as an indicator that silver is undervalued or gold is overvalued. On the contrary, a low ratio may suggest that gold is undervalued relative to silver.
