Silver and gold prices retreated on Thursday after US President Donald Trump temporarily held off on imposing fresh tariffs on critical mineral imports, providing some relief to precious metals markets that had surged to new peaks earlier in the week.

Precious Metals Performance

Silver traded close to $92.00 per ounce, pulling back from its Wednesday peak, while gold declined across major markets. The retreat came after concerns regarding potential US tariffs on silver, platinum, and palladium were temporarily eased.

Trump's Tariff Strategy Shift

Trump announced he would negotiate bilateral agreements to ensure adequate suppliers of critical minerals rather than immediately imposing tariffs. According to a statement released late Wednesday, the President floated the concept of price floors on imports instead of traditional percentage-based tariffs to develop domestic supply chains.

This approach represents a shift from earlier concerns about immediate tariff implementation on critical minerals including silver, platinum, and palladium. The announcement provided temporary relief to markets that had been pricing in potential supply disruptions.

Recent Market Rally Context

A broad metals rally had sent silver and gold to new peaks on Wednesday, alongside copper and tin, as investors rotated into hard assets amid multiple uncertainties:

• Geopolitical tensions
• Supply chain concerns
• Tariff uncertainty
• Frenzied buying activity in China and the US
• Broader rotation into commodities

The precious metals sector's strong performance at the start of the year has been supported by Trump's renewed threats against the Federal Reserve, which sparked a "sell America" trade and boosted alternative stores of value.

Federal Reserve Policy Implications

Federal Reserve officials emphasized central bank independence on Wednesday, with several officials signaling they are unlikely to support another rate cut when they meet later this month. The officials cited a resilient economy and concerns over still-elevated inflation as reasons for maintaining current rates.

Most Fed officials, except Stephen Miran, indicated resistance to further rate reductions in the near term. A pause in rate cuts may temporarily weigh on precious metals, which do not yield interest. However, traders continue pricing in one rate cut by July and two cuts by year-end, suggesting longer-term support for the sector.

Market Outlook

The precious metals market faces mixed signals as tariff concerns ease temporarily while monetary policy uncertainty persists. The combination of geopolitical factors, supply chain considerations, and Federal Reserve policy decisions continues to drive investor interest in hard assets as alternative stores of value.

Spot silver has achieved a historic milestone by surging over 7% to reach an unprecedented high of $93.44 per ounce. This remarkable price movement marks a significant moment in precious metals trading, with silver demonstrating exceptional strength in the current market environment.

Record-Breaking Performance

The surge represents a major breakthrough for silver, which has reached its highest price point on record. The over 7% increase showcases the metal's strong momentum and reflects the current market dynamics driving precious metals higher.

Market Significance

This record-high achievement positions silver as a standout performer in the commodities market. The substantial price surge indicates strong underlying demand and market confidence in the precious metal. The milestone represents a significant development for investors and traders monitoring precious metals markets.

The achievement of this all-time high demonstrates silver's continued relevance as a valuable commodity in global markets. The over 7% surge reflects the metal's ability to generate substantial returns and maintain investor interest during periods of market volatility.