Silver Hits 13-Year High: Prices Surge Past $35 Amid Dollar Slump & Tariff Tensions

Silver prices surged to their highest levels in over a decade on Thursday, topping $35 per ounce, driven by a weakening U.S. dollar and lingering concerns surrounding President Trump’s tariff policies.

Spot silver climbed past $35.90, marking its strongest showing since February 2012. July silver futures also jumped more than 4%, trading above $36 per troy ounce. The latest rally follows a similar upward trend in gold, which has been buoyed by investor caution over trade policy and increased demand from global central banks.

“This kind of move has been building momentum,” said Maria Smirnova, Senior Portfolio Manager and Chief Investment Officer at Sprott Asset Management. “Silver has tested the $35 threshold multiple times recently, so this breakout is a significant development.”

Smirnova added that if the technical breakout spurs further interest from physical silver investors, prices could continue to rise sharply. The silver market, valued just over $2 trillion, is notably smaller than gold’s $22 trillion-plus market, often leading to more dramatic price swings—up to two to three times the volatility seen in gold.

In addition to its status as a precious metal, silver plays a vital role in various industrial applications, including electronics, automotive parts, and solar panels. As the U.S. pushes to expand domestic manufacturing, supply-demand imbalances could further influence pricing.

“There’s been a growing supply deficit since 2021, with a cumulative shortfall of around 800 million ounces,” Smirnova noted. “And these deficits are expected to continue, supporting a strong case for silver investment.”

A key factor behind silver’s rise is the declining U.S. dollar, which typically moves inversely to precious metal prices. The dollar has come under pressure due to rising concerns over government spending. President Trump’s proposed tax legislation, which would increase the debt ceiling by $4 trillion, recently cleared the House, prompting a shift in capital toward foreign currencies and international equities.

So far this year, silver has gained more than 23%, while gold is up by 29%. However, analysts continue to warn about silver’s historical volatility.

“Silver is known for its sharp movements,” said Rhona O'Connell, Head of Market Analysis at StoneX. “While this rally is not necessarily unfounded, the metal is currently overbought and should be approached with caution.”

Investors are advised to remain alert as the market reacts to broader economic signals and policy developments that could shape the future direction of silver.

Also Read: Gold Price rise after Trump Announces 50% Tariffs on EU Imports and 25% Tariff Threat on Apple