Silver tops $100 an ounce for first time as global uncertainty drives demand

Worries that silver could be hit with US tariffs triggered a rush to ship metal to New York, culminating with a historic short squeeze in London in October.

• Silver topped $100 an ounce, surging on haven demand and retail buying worldwide
• Gold neared $5,000/oz, metals hit record highs amid global uncertainty.
• Silver surges due to supply deficit, retail demand, and geopolitical tensions

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Silver topped $100 an ounce for the first time, extending a scorching rally built on surging demand for haven assets and frenzied buying in retail markets from Shanghai to New York.

Spot silver surged as much as 4.2% to $100.29 an ounce on Friday, bringing gains this year to almost 40% after prices more than doubled in 2025. Gold also climbed to a fresh record, edging closer to $5,000 an ounce.

Investor demand for precious metals intensified during the first year of US President Donald Trump’s second term in the White House, amid growing uncertainties over trade, geopolitics and monetary policy. Worries that silver could be hit with US tariffs triggered a rush to ship metal to New York, culminating with a historic short squeeze in London in October.

Silver’s advance this week was fueled by a rift in Washington’s relations with European allies, while the latest attempts to reach a deal to end the war in Ukraine have so far failed to reach a breakthrough. Challenges to the Federal Reserve’s independence have also fanned demand.

Meanwhile, the global silver market has been in a supply deficit for five years. As prices push higher, there’s been a wave of retail buying. And in China, investors have piled into silver as an affordable alternative to gold, while in the US, there’s been a frenzy that’s overwhelmed dealers.

Some banks had already forecast silver to break into three figures. In a January note, Citigroup Inc. upgraded its near-term outlook for a jump to $100 an ounce, along with a prediction that gold could surge to $5,000 an ounce.

Precious metals have also found support after Trump said he had concluded interviews for the next Federal Reserve chair, a move that has revived concerns about the central bank’s independence.

The metal’s climb came despite a decision by the US in January to hold off from imposing import tariffs on critical minerals. Trump said he would negotiate bilateral agreements to ensure adequate supplies of the materials, floating price floors, while not ruling out levies.

In addition to being a financial asset, silver also has a key industrial role given it’s an efficient conductor of electricity, with the solar industry a major buyer.

Still, costlier prices have prompted some firms to cut back, with substitution and an anticipated slowdown in global solar installations,set to cut the sector’s silver consumption by about 17% this year, Shanghai Metals Market data show.

Spot gold traded at $4,961.74 an ounce as of 11:02 a.m. in New York and is on track for an 8% weekly gain, its strongest performance since March 2020. Silver was 3.8% higher at $99.93 an ounce. Platinum also hit a record Friday.