Chart of The Day – Silver.XAG

Silver futures are resuming dynamic gains, rising another 6.5% to reclaim levels above $110, despite a technical “red flag” from yesterday’s session (inverted hammer). Precious metals continue to ride the wave of renewed trade tensions, while unprecedented demand from China further supports record valuations.

Source: xStation5

What’s driving SILVER today?

• Trump tariffs return: U.S. President Donald Trump is back with a carrot-and-stick trade approach, issuing new tariff threats against America’s trading partners. The escalation in trade rhetoric raises the geopolitical risk premium and drives capital flows into hard assets at the expense of currencies and bonds.
  • Threats against Canada: Diplomatic rapprochement between China and Canada prompted Trump to threaten 100% tariffs on all Canadian products if the country does not finalize a full trade agreement with China. Canadian Prime Minister Mark Carney called Trump’s move a bluff designed to set the bar for U.S.-Canada free trade negotiations.
  • Tariff hike on South Korea: Alongside Canada, South Korea is also in Trump’s sights, as its legislature has yet to ratify the trade agreement signed with the U.S. last year. The “legislative delay” prompted Trump to raise all retaliatory tariffs—including on cars, lumber, and pharmaceuticals—from 15% to 25%. This has not prevented gains on the Korean stock market, which expects ratification in February.
• China prices surge: Silver contracts in China surpassed $125 today, diverging from the current $112 in the U.S. The growing price premium in Shanghai versus Comex signals stress in global supply and confirms that physical demand in China appears to be the main fundamental driving the current trend. Supporting this are Chinese export figures, which show shipments of the metal in 2025 reaching a 16-year high.
• Speculative trading fuels the thin market: The silver futures market is far less liquid than gold (daily London turnover is roughly five times smaller), meaning new speculative positions have a disproportionate impact on prices. Short-term momentum traders and investors using silver as a macro hedge amplify volatility and accelerate upside breakouts.

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