Silver fell more than 7% on Thursday, retreating from an all-time high above $93/oz, as broad tariff threats receded. However, prices have since recovered much of the earlier decline, signalling that traders are repricing the market’s structural drivers. The recent recovery underscores silver’s well-known volatility, which is typically higher than gold due to its smaller market size and dual role as both industrial and investment metal.
The decision reduced part of the near-term policy risk premium that had propelled silver to record levels. Despite the correction, silver prices remain more than 25% higher year-to-date, highlighting the strength of underlying market dynamics.
Trump said the administration would instead pursue bilateral agreements with key trading partners to secure adequate supplies of critical minerals and consider a price floor on imports, with officials expected to report back within 180 days. While tariffs were not ruled out entirely, the shift in tone reduced the immediate disruption risk.
The decision follows a months-long Section 232 review under the Trade Expansion Act, assessing whether imports of processed critical minerals threaten US national security.
The tariff review covered a broad set of processed critical minerals beyond silver, from lithium, cobalt, nickel, rare earths and gallium to graphite, platinum group metals and other industrial metals, along with any goods incorporating them such as semi-finished goods and final components used in electric vehicles, batteries, permanent magnets, and electronics.
