Silver stabilised on Tuesday after retreating to a certain extent from a new peak yesterday in a bout of volatility.
The metal had already breached the USD 100 threshold last Friday, fuelled by retail participation and momentum-driven flows, and remained close to the USD 111 level.
The macro backdrop remains supportive. President Trump’s latest tariff threat adds another layer to current trade frictions.
Meanwhile, mounting fears of a potential US government shutdown this Friday are pushing investors into safe-haven assets, amid concerns over the impact on the US economy. The shutdown could also result in a delay in key economic data releases, adding to the uncertainty over the direction of monetary policy.
In this regard, the upcoming Fed decision will be closely watched. Forecasts continue to point to two interest rate cuts in 2026, which might add to the current bullish trajectory in the silver market. In the meantime, broader concerns over the central bank’s independence have amplified silver’s appeal.
