Silver prices surged to near record highs following a major short squeeze in the London market. Meanwhile, gold hit a new record above US$4,060 per ounce, driven by surging demand for safe haven assets amid trade tensions between the United States and China. Other precious metals, such as platinum and palladium, also rallied by more than 2%.

This price increase was driven by a combination of massive central bank purchases, increased ownership in ETFs, and the Federal Reserve's low interest rate policy. Furthermore, political uncertainty in the US and the threat of new tariffs on China have bolstered investor interest in precious metals.

Silver briefly rose as much as 1.1% to around US$51 per ounce, approaching its previous record of US$52.50 from 1980. Dwindling silver supplies in London have driven prices sharply higher compared to the New York market. Some traders have even reportedly shipped silver by plane to London to capitalize on the high price difference—a move typically reserved for gold.

The market situation has also been exacerbated by concerns about the outcome of the US "Section 232" investigation, which could impact the trading of key metals such as silver, platinum, and palladium. If new tariffs are implemented, the prices of these metals could become even more volatile.

Source: Newsmaker.id