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>>Silver Prices Surge to $87.50 for XAG/USD Amid Heightened Geopolitical Tensions and Tariff Concerns

Silver Prices Surge to $87.50 for XAG/USD Amid Heightened Geopolitical Tensions and Tariff Concerns

crypthub

about 2 hours ago

Silver Surge

On March 20, 2025 silver (XAG/USD) jumped to about $87.50 per ounce, marking one of the sharpest single‑day rises this year. The rally was sparked by heightened US‑Iran tensions and the announcement of new tariffs on industrial components. Investors turned to silver as a safe‑haven, driving a bullish reassessment of its near‑term trajectory.

Geopolitical Drivers

Geopolitical instability raised the risk premium for commodities, prompting managed money to flip from net‑short to net‑long positions in COMEX futures within 48 hours. Disruptions to trade routes and energy supplies increased input costs for silver‑intensive industries. Analysts view the move as a broader shift toward inflation hedges amid a weakening dollar index.

Industrial and Tariff Impact

Tariffs on electronic and automotive parts amplified industrial demand, as silver is vital for photovoltaics, EV batteries and 5G infrastructure. Higher production costs encourage manufacturers to stockpile the metal, creating a price floor beyond speculative buying. The combined safe‑haven and physical demand pressures reinforce a sustained upward bias.

Outlook and Key Levels

Technically, the $85.00 level now acts as support, while $90.00 is the next psychological resistance. The 50‑day moving average has turned upward, confirming short‑term bullish momentum. Persistent physical deficits and stagflation concerns suggest the $87.50 zone could become a new base for further gains.