Silver was the commodity darling of 2025 and the squeeze increased is continuous this 12 months. Costs are up 5% at this time and above $80 for less than the second time ever.
The primary rise above $80 got here on Boxing Day in low liquidity and shortly light. This foray increased is coming in New York/European hours with desks totally staffed. That is a powerful indication of underlying curiosity and continued backing from retail flows.
silver hourly chart
Notably, treasured metals have a powerful seasonal sample in Dec/Jan, one thing I have been writing about for 15 years. With silver up 5% at this time, gold can be up 0.5% or $23 to $4471 after hitting as excessive as $4490. We’re possible seeing some revenue taking forward of $4500.
The rally in treasured metals this week has been helped by the seizure of Venezuelan President Nicolas Maduro by the Trump administration. That alone most likely is not chargeable for the tailwinds nevertheless it was adopted by administration officers speaking about Colombia, Mexico, Cuba and Iran.
Greenland can be again on the agenda because the President talks about annexing the island regardless of it being a part of NATO and Denmark.
Trump henchman Stephen Miller is out at this time with this line:
“We reside in a world…that’s ruled by power, that’s ruled by pressure, that’s ruled by energy. These are the iron legal guidelines of the world for the reason that starting of time.”
The US greenback’s basis within the rule of legislation however with feedback like this, you would possibly wish to maintain one thing that is been worthwhile ‘for the reason that starting of time’ within the type of gold and silver.
I anticipate reserve managers to more and more flip away from the US greenback and switch in the direction of gold. Denmark holds a big portion of its FX reserves in US {dollars} and I’d be cautious of the US utilizing these as leverage in a hostile negotiation (or combat) over Greenland.
silver day by day chart
