FX.co ★ Silver Retreats after Record Setting Rally

Silver prices receded below $93.50 after attempting to maintain a record high near $96. This decline came as easing geopolitical tensions reduced the need for defensive positioning in the market. The initial rally in silver prices was fueled by renewed threats of tariffs related to Greenland, coupled with a significant sell-off in Japanese government bonds. This situation weakened the dollar and increased the appeal of precious metals, driven by concerns about fiscal management in major global economies. Nonetheless, prices decreased once President Trump ruled out military intervention, leading to the stabilization of risk assets and U.S. Treasuries. Despite this dip, silver remains buoyed by ongoing physical supply constraints. The market is currently experiencing its fourth consecutive year of global supply deficits, making prices especially sensitive to any resurgence in currency volatility, sovereign debt issues, or trade policy changes.