Silver prices fluctuated near record highs as a historic short squeeze in the London market and trade tensions disrupted the market; gold prices hit another record high. Furthermore, concerns about the White House imposing tariffs on gold and other precious metals also drove sharp gains in platinum and palladium.

Silver prices rose as much as 1.1% to nearly $51 per ounce, while platinum and palladium both rose by more than 2%. Gold prices hit a record high above $4,060 per ounce, marking its eighth consecutive weekly gain last week.

Precious metal prices have soared this year, with gains in four major metals dominating the commodities market, with increases ranging from 50% to 80%. Gold's gains were supported by central bank purchases, increased holdings of exchange-traded funds (ETFs), and Federal Reserve interest rate cuts. Recurring trade tensions, threats to the Federal Reserve's independence, and the US government shutdown have also fueled demand for safe-haven assets.

The US has asked the Secretary of Commerce to launch an investigation into critical minerals, including silver, platinum, and palladium, under the authority of Section 232 of the Trade Expansion Act of 1962, to "assess the impact of imports of these materials on the security and resilience of the United States." Concerns that these metals could be affected by Trump's tariffs have exacerbated market tightness, in part setting the stage for the tightness of silver prices in London following a sharp drop in silver supplies.

Concerns about liquidity shortages in London have pushed silver prices close to their record high of $52.50 per ounce reached in 1980. The London benchmark price has soared to near-unprecedented levels relative to the New York price, prompting some traders to book cargo space on transatlantic flights to transport silver bars—an expensive method of transportation typically reserved for more valuable gold—in order to profit from the hefty premiums in London.

Spot gold rose as much as 1.1% to $4,060.01 per ounce and is currently trading at $4,046.60. The U.S. dollar index was little changed after rising about 1% last week. Silver rose 0.5% to hold above $50 an ounce. Platinum was trading around $1,633 an ounce, while palladium topped $1,436 an ounce.