Silver keeps shattering records, hits $110 for first time ever

Silver prices rose in the European market on Monday, extending gains for a third consecutive session and continuing to smash record highs, especially after breaching the psychological $100-per-ounce level and reaching $110 for the first time ever. The rally has been driven by strong buying from retail investors, alongside broad weakness in the US dollar against a basket of currencies.

Recent decisions by US President Donald Trump have deepened the loss of confidence in the US administration and in dollar-denominated assets, after adding to political confusion and economic uncertainty.

Price overview

• Silver prices today: Silver surged 6.6% to $110.13 per ounce, the highest level on record, from an opening level of $103.29, which also marked the session low.

• At Friday’s settlement, silver prices jumped 7.4%, recording a second consecutive daily gain after breaking above the $100-per-ounce level for the first time in history.

• Silver prices climbed 14.5% last week, marking a third straight weekly gain, driven by strong demand for the white metal.

US dollar

The US dollar index fell by more than 0.5% on Monday, extending losses for a third consecutive session and hitting a four-month low at 96.95 points, reflecting continued weakness in the US currency against a basket of major and secondary currencies.

As widely known, a weaker US dollar makes dollar-priced bullion more attractive to buyers holding other currencies.

The decline comes amid accelerating dollar selling, fueled by growing concerns over potential intervention by monetary authorities in both the United States and Japan to curb volatility and stabilize exchange rates.

This is compounded by rising political and economic risks in the United States, alongside waning confidence in dollar-denominated assets and expanding global uncertainty.

Trump threats

Over the weekend, US President Donald Trump sharply escalated his trade threats, announcing plans to impose 100% tariffs on Canada if it proceeds with a trade agreement with China.

He also threatened to levy 200% tariffs on French wine and champagne. This move was not merely economic in nature, but a clear attempt to pressure French President Emmanuel Macron to join Trump’s new initiative known as the “Peace Council” for Gaza.

US interest rates

• The Federal Reserve’s first monetary policy meeting of the year begins tomorrow, Tuesday, with decisions due on Wednesday. Expectations remain firmly anchored around keeping interest rates unchanged.

• According to the CME FedWatch tool, the probability of leaving US interest rates unchanged at the January 2026 meeting stands at 97%, while the probability of a 25-basis-point rate cut is priced at 3%.

• Investors are currently pricing in two US rate cuts over the coming year, while Federal Reserve projections point to a single 25-basis-point cut.

• To reassess these expectations, investors are closely monitoring upcoming US economic data.

Silver outlook

HSBC noted in a report last week that the recent surge in gold and silver prices has been driven by geopolitical tensions related to Greenland.