Trump's Tariffs Heat Up Market, Silver Skyrockets
Spot silver prices (XAG/USD) hit another record high on Monday (January 19), breaking through the $94/ounce area as funds rushed to the safe-haven asset after US President Donald Trump's escalating tariff threats against several European countries over the Greenland issue sparked trade war concerns. Silver briefly peaked around $94.08–$94.16/ounce before settling in the $93.5–$94/ounce range, marking a continuation of the sharp rally that made the precious metal one of the hottest assets at the start of the week.
Market sentiment worsened after Trump revived the tariff narrative against several European countries, which was seen as risking a depressing effect on global trade and increasing volatility. This situation prompted investors to reduce exposure to risky assets and return to defensive instruments, while the dollar tended to weaken. The combination of risk-off and pressure on the greenback made precious metals more attractive, as dollar-based commodities became relatively cheaper for buyers outside the US.
Beyond geopolitical factors, silver is also supported by its dual role as a hedge and industrial metal, so its demand is not solely dependent on safe-haven flows. The needs of the industrial sector—from electronics to the energy supply chain—keep demand fundamentals solid, while the market continues to monitor further developments on the Greenland tariff issue, which has the potential to become a new catalyst for volatility in silver's movements in the short term.
Source: Newsmaker.id
