Silver’s Record Rally Halted by Tariff Policy Reversal

A dramatic surge that propelled silver to an unprecedented peak of $93.75 per ounce came to a sudden halt on Friday, as prices experienced a sharp sell-off. The catalyst was an unexpected policy shift from Washington, where President Trump announced a temporary suspension of import duties on critical minerals, a category that includes silver. This move abruptly quelled market speculation that tariffs would further constrict an already tight physical supply.

Key Market Developments

• The silver price retreated by more than 7% from its all-time high during the session.
• The psychologically significant $90 per ounce level failed to hold as support.
• A wave of selling was triggered directly by the presidential announcement.
• Underlying physical scarcity in the market remains unchanged.

Fundamental Scarcity Meets Shifting Political Winds

The preceding explosive price advance was grounded in tangible supply and demand dynamics. Robust consumption from industrial users, alongside the solar and battery sectors, created enormous demand that collided with a supply chain that has been tightening for months. The situation was particularly acute in China, where silver traded at a substantial premium on the Shanghai Gold Exchange, at times equivalent to over $100 per ounce—a clear indicator of strained regional availability.

This very scarcity had fueled bets that potential U.S. tariffs would exacerbate the physical deficit. President Trump’s decision to forgo these import charges removed the foundation for that trade. The immediate market reaction was a round of profit-taking, which forced the price below the crucial $90 threshold.

Should investors sell immediately? Or is it worth buying Silber Preis?

Market Digests Extreme Volatility

From a technical perspective, conditions remain tense. While the longer-term upward trend is still intact for now, the extreme volatility witnessed in recent trading sessions points to significant investor anxiety. A sustained break below the $90 level has the potential to trigger additional liquidation.

The critical question for traders is whether the fundamental tightness in the physical market will provide sufficient support to stabilize prices, or if the evaporation of the tariff premium will initiate a more profound correction. The current price action in the precious metal is being dictated by this clash between a structural supply deficit and a sudden political reversal.