• Silver posts a fresh all-time high and extends an exceptional bullish momentum.
• Trade tensions, US political risks and monetary policy expectations fuel defensive demand.
• Persistent weakness in the US Dollar boosts the appeal of precious metals for global investors.

Silver (XAG/USD) continues its spectacular rally at the start of the week, trading around $109.50 at the time of writing on Monday, up 6.90% on the day. The white metal earlier touched a new record high at $110.90, benefiting from an increasingly uncertain macroeconomic environment that favors safe-haven assets.

Risk aversion remains driven by mounting concerns surrounding the United States (US). Repeated trade threats from the US administration, growing risks of a budget shutdown and questions over the independence of the Federal Reserve (Fed) are reviving fears about a deterioration in the economic and institutional framework. In this context, investors are turning to precious metals as a hedge against macroeconomic and financial instability.

Persistent pressure on the US Dollar (USD) is another key pillar supporting Silver. The Greenback remains weighed down by expectations of interest rate cuts and political uncertainty in Washington, making dollar-denominated metals more attractive to foreign buyers and mechanically strengthening demand.

Beyond its safe-haven status, Silver is also benefiting from strong industrial fundamentals. Demand linked to the energy transition, particularly from solar, electrification and grid infrastructure sectors, continues to tighten the physical market, while mine supply growth remains limited.

Expectations surrounding US monetary policy also remain central. Markets believe the Fed is likely to maintain a cautious stance in the near term, while keeping the door open to easing later in the year should the economic slowdown intensify. This outlook for lower real rates continues to support non-yielding assets such as Silver.

Overall, despite an already impressive rise since the start of the year, the current macroeconomic backdrop, characterized by political uncertainty, trade tensions and a weaker US Dollar, continues to argue in favor of sustained demand for Silver, both as a safe-haven asset and as a strategic metal for the global economy.