Silver (XAG/USD) rose for a fourth straight day. It traded near $87.10 per troy ounce in Asian hours on Monday and moved closer to $87.50. Demand increased as tariff uncertainty drove safe-haven buying in precious metals. After a US Supreme Court ruling that limited broad tariff powers, President Donald Trump said he would raise global import tariffs to 15% from 10%. He said the new tariffs would take effect immediately and signalled that more levies could follow.

Trade Authority In Focus

The court said his use of emergency powers to impose reciprocal tariffs was unlawful. This narrowed his ability to act on trade policy without Congress. As a result, markets remain focused on trade risks. India has postponed planned trade talks with the United States. This delays progress on an interim trade pact. European officials are also reviewing future trade commitments and want clarity on how current agreements could be affected. Tensions in the Middle East also increased risk aversion. Trump said limited military strikes on Iran are still being considered if talks fail to address Tehran’s nuclear programme. This supported demand for safe-haven assets. We remember how the sudden 15% global tariff announcement in 2025 pushed silver toward $87.50. Combined with US-Iran tensions, it showed how fast geopolitical risk can move the precious metals market. Silver is now trading at a much lower level, but that past volatility should still guide our strategy.

Positioning For The Next Shock

Markets are calmer now. Silver is trading around $34.50 this week, and implied volatility has dropped sharply. For example, the Cboe Silver ETF Volatility Index (VXSLV) is near 28. That is far below the levels above 60 seen during the peak of last year’s tariff crisis. This may indicate growing complacency, which can create opportunity for traders who expect future shocks. In this setup, buying long-dated call options on silver can be a sensible strategy. It offers a relatively low-cost way to position for a repeat of last year’s price spike, whether driven by trade disputes or other unexpected global events. The maximum loss is limited to the premium paid, which keeps risk clearly defined while preserving upside. It may also help to use strategies that benefit from rising volatility, not just rising prices. Buying straddles or strangles on silver ETFs can work well, because they can profit from a large move in either direction. The lesson from 2025 is that the first market reaction to political headlines can be extreme and hard to predict. Historically, silver has often rallied sharply during periods of high uncertainty. One example is the 2010–2011 sovereign debt crisis, when prices more than doubled in under a year. Recent data also shows open interest in silver futures has been rising steadily since the start of 2026. This may suggest institutional traders are quietly building positions ahead of renewed turbulence. Create your live VT Markets account and start trading now.

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