New York, Jan 20, 2026, 10:18 (EST) — Trading during the regular session.
- Silver remains close to record highs as investors seek safe havens.
- Tariff news and growing risk aversion boost demand for precious metals.
- Traders focus on Wednesday’s Supreme Court arguments involving the Federal Reserve.
Spot silver climbed 0.7% to $95.308 an ounce on Tuesday, briefly touching a record $95.488. The metal stayed close to gold’s recent surge as investors sought safe havens following President Donald Trump’s renewed tariff threats involving Greenland. UBS analyst Giovanni Staunovo highlighted growth concerns and Trump’s push for lower U.S. rates as key factors. WisdomTree strategist Nitesh Shah expressed being “a little bit more worried” about downside risks despite a broader buyer base. Silver has surged 33.7% so far this year, after a massive 147% jump in 2025. 1
Markets reopened Monday after the U.S. holiday to a risk-off mood that dragged stocks lower and boosted demand for protection trades. The S&P 500 and Nasdaq both slid more than 1% early on, while the VIX volatility index climbed to a two-month peak. Traders are also gearing up for a packed slate of U.S. data, including a GDP update, January PMI surveys, and the Personal Consumption Expenditures report, the Fed’s favored inflation measure. 2
UK shares dropped over 1%, with precious metals miners climbing as gold surged past $4,700 and silver stayed close to record highs. “What happens next for financial markets will ultimately depend on Trump’s actions,” said Kathleen Brooks, research director at XTB. She noted that his remarks on Greenland at this week’s World Economic Forum in Davos will be key. 3
Trump announced a 10% tariff starting Feb. 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain. That rate could jump to 25% on June 1 if no Greenland deal is struck. “It’s highly likely that the White House will use the threat of tariffs consistently,” said George Lagarias, chief economist at Forvis Mazars. The dollar slipped against the yen and Swiss franc amid a wider risk-off mood. 4
Silver surged again after Monday’s 5% jump to $94.41, having briefly hit a record $94.61. Fed Vice Chair for Supervision Michelle Bowman noted the job market’s fragility, suggesting the central bank should be ready to cut rates if necessary. Traders expect the Fed to pause at the Jan. 27-28 meeting, but anticipate at least two 25-basis-point cuts later this year. Citi Research remains tactically bullish on precious metals, setting a $100 target for silver within three months. 5
Several strategists warned of a “risk-off” mood ahead of the market reopening. Kallum Pickering, chief economist at Peel Hunt, said the early moves would probably be risk-averse. He added that gold and silver are set to rally, highlighting how tariff tensions could weigh on sentiment and the dollar. 6
Silver tends to follow gold when investors seek safety, but it’s not a straightforward safe haven. Its role in industry means it can be more volatile when growth concerns mount. Plus, rate expectations influence silver since bullion yields no interest, shifting the opportunity cost as rates move.
Reuters’ Morning Bid noted markets were veering toward a “sell America” mood, as stock futures, Treasuries, and the dollar all came under pressure, despite the 10-year U.S. yield hitting a four-month peak. 7
The surge in silver has been sharp, and liquidity can evaporate fast once the headlines shift. Any easing in tariff talk, a bounce in the dollar, or a fresh spike in real yields might drag prices off their highs and trigger more profit-taking.
Wednesday brings the next key event as the U.S. Supreme Court prepares to hear arguments on Trump’s bid to remove Federal Reserve Governor Lisa Cook. Investors view the case as a critical test of the Fed’s independence, especially with rate expectations already shaking up markets. 8
