Trump Tariff Hike Sparks Silver Price Surge and Bullish Market Sentiment

Published: Jun 5, 2025 21:23

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According to foreign media reports, the Trump administration announced that it would raise steel and aluminum tariffs from 25% to 50%, leading to a significant increase in silver prices. This news has sparked market expectations that the US may adopt similar trade measures on other key metals, thereby driving up the demand for silver as a safe-haven and substitute asset. Goldman Sachs futures trader Robert Quinn stated that there was a notable build-up of bullish positions in the silver futures market, with the total open interest in silver futures increasing by $2.8 billion, marking the largest two-day increase in the past year. Despite significant fluctuations in Exchange for Physicals (EFP), an overall contango trend was observed, reflecting heightened market expectations of tight spot supply. The rise in silver prices has prompted programmatic funds to enter the market and take long positions. The options market also exhibited a bullish stance: implied volatility increased, the put-call skew pulled back, and the ratio of 5 Delta to 25 Delta call options rose.

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