The iShares Silver Trust (SLV) surged 6.64% in pre-market trading on Tuesday, reflecting heightened investor interest in silver amid escalating geopolitical and trade uncertainties. The ETF's sharp rise coincided with spot silver prices hitting a historic high of $94.68 per ounce earlier in the session, driven by a combination of technical breakouts and risk-off sentiment.
Analysts attribute the rally to US President Donald Trump's threat of tariffs on eight European nations opposing his Greenland annexation plan, which has stoked fears of a disruptive trade war. The news triggered a flight to safe-haven assets, with silver benefiting from its dual role as a monetary and industrial metal. Metals Focus also noted robust investment demand and structural supply deficits as key drivers for silver's outperformance.
The bullish momentum is further supported by technical indicators, including a confirmed breakout above the $93.50 resistance level and accelerating buying pressure. Market participants now eye the psychological $100/oz threshold as the next potential target for silver, with SLV poised to track further gains if trade tensions persist.
