The silver futures at COMEX reached a 13-year high last week, closing with a gain of +5.22% at $39.075 per ounce. This marks the highest level in over 13 years.
Political Influences on Silver Prices
This recent rally is significantly fueled by political support. In particular, the new US tariff policy is clearly influencing the market: President Trump announced high tariffs of up to 35% on Canadian imports as well as widespread punitive tariffs of 15-20% on many other trading partners. These measures generate a global distrust in economic policy stability and increasingly drive investors into safe assets such as silver and gold.
Institutional Investors Remain Optimistic Despite Uncertainties
Institutional investors continue to remain optimistic despite a slight reduction in their positions. The so-called large traders hold a net of over 58,000 long contracts. Many investors are betting on a continuation of the upward movement, even if initial hedges are being made. This development may indicate a slightly overbought market situation in the short term, but it does not affect the positive overall picture of the market.
Seasonal Trends and Market Outlook
Seasonally, the time until the end of July supports the upward trend in silver prices. Historically, corrections are often common in August before a trend recovery begins again from September. Thus, a short-term setback is possible and not unusual; however, the long-term outlook remains intact.
Additionally, a potential compromise in the tariff dispute between the US and other trading partners could further stimulate the industrial demand for silver. Currently, this is being held back due to uncertainty.
Overall, this development emphasizes to investors in the German-speaking region the dynamics of the silver market against the backdrop of political tensions and economic uncertainties. The interest in safe assets as protection against global risks remains high.