Silver soars to decades-high in historic short squeeze as gold hits record

[Gold and silver bars]
Inok

Silver prices reached their highest in decades on Monday as a historic short squeeze in London amid US-China trade tensions roiled the market, while gold notched another record driven by safe-haven demand.

Concerns about a lack of liquidity in London drove silver closer to a $52.50 an ounce record from 1980, set on a now-defunct contract on the Chicago Board of Trade exchange.

Benchmark prices in London have also soared to near-unprecedented levels over New York, prompting some traders to book cargo slots on transatlantic flights for silver bars—an expensive mode of transport typically reserved for gold—to profit off the massive premiums in London, _Bloomberg _reported.

Spot silver (XAGUSD:CUR [https://seekingalpha.com/symbol/XAGUSD:CUR]) climbed as much as 2.7% to top $51 an ounce—exceeding last week’s intraday high—as gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) rose 1.5% to $4,072.32, following eight straight weeks of gains. Platinum and palladium also registered strong gains.

Economic and geopolitical uncertainty tend to be positive drivers for gold, due to its safe-haven status and ability to remain a reliable store of value. The metal has risen 53% this year, while silver has advanced 78%.

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Seeking Alpha

On Sunday, China called on Washington to stop threatening new tariffs and resume negotiations, warning that it would retaliate if the U.S. proceeded with additional measures.

Traders also remain on edge ahead of the conclusion of the U.S. administration’s so-called Section 232 probe into critical minerals, which includes silver, as well as platinum and palladium.

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