Silver (XAG/USD) snapped a four-day rally and traded near $87.50 per troy ounce in Asian trading on Tuesday. Prices may still find support as trade uncertainty and geopolitical risks remain high. The Wall Street Journal reported on Monday that the Trump administration is weighing new national security tariffs on six industries. This comes after last week’s Supreme Court ruling that struck down several second-term tariffs.

Section 232 Tariff Plans

The report said the new tariffs would be introduced under Section 232 of the Trade Expansion Act of 1962. They would be separate from the 15% global tariff announced on Saturday. The European Union signaled it may pause ratification of its trade agreement with the US. There are also questions about how long any new measures would last, since Congress is not expected to extend them beyond the 150-day limit. India and the US delayed a planned three-day meeting between trade negotiators on an interim trade pact. The postponement comes as Washington adjusts its tariff strategy after the Supreme Court struck down the wider reciprocal duty framework. Middle East tensions have remained elevated for weeks after Trump said a possible strike on Iran could be imminent. Oman said a third round of US–Iran talks will take place this week in Geneva.

Volatility Outlook For Silver

Silver price volatility may rise sharply in the coming weeks. Markets are getting mixed signals: tariffs could boost safe-haven demand, while any easing in geopolitical risks could reduce it. Traders should be ready for fast moves in either direction. In this kind of market, options strategies such as straddles can help capture movement either way. This setup is familiar. In 2025, markets often looked back at the trade disputes of the late 2010s. At the height of US–China trade war uncertainty in mid-2019, silver surged more than 30% in just three months. History shows that tariff headlines can be a strong catalyst for precious metals, even if the broader economic effects take longer to show up. The Washington–Tehran talks are a key wild card. If negotiations go well, silver could pull back quickly. If talks break down, prices could spike toward new highs. Options markets are already pricing in this “either-or” risk. COMEX data shows implied volatility for front-month silver contracts has risen to a three-month high of 35%. Beyond the headlines, flows into silver derivatives suggest large players are positioning for a move. Open interest in silver futures has jumped nearly 8% over the past five sessions. That points to new money entering the market, not just traders reshuffling positions, and it strengthens the case for a bigger move ahead. At the same time, silver is also an industrial metal, with industrial use making up more than 50% of annual demand. If the administration’s new tariffs on six industries slow manufacturing, silver could face pressure from weaker industrial consumption. For that reason, bullish positions may need hedges against the risk that a global growth scare overwhelms any safe-haven support. Create your live VT Markets account and start trading now.

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