Silver price soars above 14-year high as Trump tariff threat triggers safe-haven flows
Silver rises despite strong U.S. dollar
Silver is extending its bullish momentum on Friday, July 11, building on Thursday’s strong breakout from a converging triangle pattern. The rally on Friday began during the Asian session and gained traction through the European hours, carrying the metal above the upper boundary of a broader four-week consolidation range. This push lifted silver to a new 14-year high at $37.56, reclaiming the $35.50 level last seen in 2012.
• Silver hits a fresh 14-year high at $37.56 after breaking out of a multi-week consolidation
• Geopolitical tariff threats boost safe-haven demand despite strong U.S. jobs data
• Silver intraday volume divergence hints at possible retracement
Thursday’s breakout was a pivotal moment technically, backed by volume larger than the previous eight days. It flipped the weekly performance into positive territory and reawakened buying interest across precious metals. However, the rally during today’s European session has shown signs of exhaustion, as the volume tapered off despite the new highs. This divergence between price and volume raises the possibility of short-term consolidation or even profit-taking if buyers begin to retreat.
Silver price dynamic (Jan - July 2025). Source: Tradingview
Fundamentally, the rally in silver has occurred despite economic data that strengthened the U.S. Dollar. The latest U.S. unemployment claims came in at 227k, lower than the forecast of 236k, reinforcing a stronger labour market and lending short-term support to the greenback. However, the focus of investors has shifted more toward geopolitical risk than macroeconomic indicators.
Silver strength challenges dollar resilience amid geopolitical tensions
Safe-haven demand has surged after U.S. President Trump’s recent tariff threat. On Thursday, Trump announced the possibility of raising the blanket tariff rate from 10% to either 15% or 20% on countries that fail to meet terms during the ongoing 90-day reciprocal tariff negotiation period. His comments, made in a televised interview, rattled risk sentiment globally and pushed investors into traditional hedges like precious metals.
This mix of geopolitical tension and technical breakout has allowed silver to stand out, even against a backdrop of dollar strength. At the current high, silver is up 1.45% for the day and 1.8% for the week, marking a solid recovery after recent consolidation. The breakout level at $37.31 now serves as near-term support. If this level holds, the door remains open for silver to continue its push higher. Failure to hold that zone may invite a pullback toward previous breakout levels or a retest of the prior triangle structure.
In summary, silver’s breakout to $37.56 reflects a strong bullish bias supported by geopolitical risk, despite a stronger dollar and mixed volume signals. The sustainability of this move will depend on follow-through above $37.56 or a firm defence of support at $37.31.
Silver broke out above $36.80 from a symmetrical triangle but low volume questioned the move. Fed officials hinted at a possible rate cut this year, which supported silver
