Silver briefly rose to $58.84 per troy ounce, marking a temporary halt after a 10% spike since Friday and lifting its year-to-date gains above 100%. Despite the pullback to around $57, tight supply and low inventories on Shanghai exchanges continue to underpin Silver’s strong performance this year, Commerzbank's commodity analyst Carsten Fritsch notes.

US tariff speculation unlikely driver of Silver rally

"On Friday, the price of Silver surpassed its previous all-time high from mid-October, triggering another sharp rise that came to a temporary halt yesterday at $58.84 per troy ounce. Since Friday, the price has temporarily risen by 10%, bringing its annual performance to more than 100%. This makes Silver the strongest performer among all the commodities we track this year."

"Although the price has fallen slightly recently, it is still trading at a good $57, well above the October high mentioned above. There were no new reasons for the recent price jump. However, the known reasons still apply, namely tight supply, which is reflected in low inventories on the Shanghai exchanges. One possible reason that has been cited occasionally is nevertheless worth mentioning."

"There is reportedly speculation that US President Trump could introduce tariffs on Silver, as the US Geological Survey (USGS) has placed Silver on a list of critical minerals. However, this already happened a month ago, which is why the timing of the price increase does not coincide with this news. Comex Silver stocks have not shown any notable changes so far either."