Silver prices have surged by as much as 18% since the start of the year.

Silver prices have experienced a significant rise of 18% since the beginning of the year. Several factors have contributed to this surge, including a weaker US dollar, market anxieties regarding upcoming trade policies under the Trump administration, and a subsequent increase in hedging practices among traders anticipating potential import costs. Additionally, improving sentiment regarding China's economic situation has led to further gains in silver prices. However, despite increased safe-haven demand for both silver and gold amid economic uncertainties, silver remains less favored due to its higher economic sensitivity. Looking ahead, the Silver Institute predicts another significant market deficit in 2025, with industrial demand continuing to be the primary driver of the tight supply-demand balance. Silver has been trending upwards in a rising channel pattern since the year's start, with technical indicators like the daily Relative Strength Index suggesting that buyers are in control. In parallel, copper has also seen gains, supported by positive sentiment around China's economy and concern over the US's reliance on foreign copper, which led to a recent executive order from President Trump to investigate copper imports. This move could potentially lead to preemptive trading activities ahead of any tariff announcements. While silver and copper both show robust performance amidst a complex geopolitical and economic backdrop, the market is not without risks. Both metals are vulnerable to sudden policy shifts, like potential tariffs, which could alter market expectations and weigh on global growth outlooks. This article's analysis has been reviewed by artificial intelligence, ensuring a comprehensive understanding of silver and copper price movements and the broader economic implications.