Silver prices have surged above $100 per ounce for the first time, propelled further by a scorching rally driven by a spike in safe-haven demand and frenzied buying in retail markets from Shanghai to New York. Spot silver soared by as much as 4.2% on Friday, touching $100.29 per ounce. After more than doubling in 2025, the precious metal has climbed nearly 40% this year alone. Investor demand for various precious metals has swelled during the first year of former U.S. President Donald Trump's return to the White House, as uncertainties over trade, geopolitics, and monetary policy intensify. Fears that silver could be targeted by U.S. tariffs triggered a wave of shipments to New York, which ultimately sparked an unprecedented short squeeze in the London market last October. The deterioration in U.S.-European relations further amplified silver's gains this week, with the latest efforts to end the war in Ukraine failing to make a breakthrough also adding fuel to the rally. Challenges to the Federal Reserve's independence have also stimulated demand. Meanwhile, the global silver market has experienced a supply shortfall for five consecutive years. Rising prices have stimulated a buying frenzy in the retail market. Investors are flocking to silver, viewing it as a more affordable alternative to gold. The rush for silver in the United States has left traders struggling to keep up. Some institutions had previously forecast that silver prices would break into triple digits. Citigroup, in a January research report, raised its near-term forecast, projecting that silver would skyrocket to $100 per ounce, while setting a target for gold at $5,000.
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