Silver hovered near a record high amid a historic short squeeze in London and escalating US-China trade tensions, while gold reached a new peak. Concerns about possible White House tariffs on gold’s related metals pushed platinum and palladium sharply higher, with both rising over 2%. Silver gained up to 1.1%, nearing $51 an ounce, and gold surpassed $4,060 an ounce after marking its eighth consecutive weekly gain.
This year, precious metals have surged dramatically, with the main four—gold, silver, platinum, and palladium—rising between 50% and 80%, dominating commodity markets. Gold’s rally is supported by central bank purchases, increased ETF holdings, and Federal Reserve rate cuts, along with safe-haven demand fueled by US-China trade tensions, concerns over the Fed’s independence, and a US government shutdown.
On Sunday, China urged the US to stop tariff threats and resume talks, warning of retaliation if tariffs proceed. Meanwhile, President Trump softened his stance after previously threatening 100% tariffs. In London, silver prices soared near a 1980 record of $52.50 an ounce due to tight liquidity, causing traders to transport silver bars via transatlantic flights to capitalize on high London premiums.
