Silver Prices Rebound as Key Resistance Level is Tested

Silver surges over 4% toward $90/oz, driven by a 75% drop in COMEX inventories, new US tariffs, geopolitical risk, and expansionary Japanese monetary policy.

Following a severe sell-off last week, silver is staging a recovery. The precious metal is pushing higher today, aiming once more for the $90 to $91 per ounce range. This move is not driven by a single catalyst but rather by a confluence of factors: trade policy shifts, persistent geopolitical risk, and a fundamentally tight physical market.

Physical Scarcity Underpins the Market

Beyond the headlines, a critical fundamental factor remains dominant: available COMEX inventories. Registered stockpiles fell to approximately 88 million ounces in February—a staggering decline of roughly 75% over five years. This leaves less physical metal available to back futures contracts.

Concurrently, industrial demand stays robust. The structural supply deficit is now in its sixth consecutive year, according to sources. Even as parts of the solar industry, facing high costs, increasingly seek alternatives like copper, this has so far been insufficient to meaningfully alleviate the tightness.

Trade Tariffs and Geopolitics Add Support

Uncertainty surrounding trade policy is bolstering demand for traditional safe-haven assets. As of yesterday, temporary global tariffs of 10% are in effect in the United States. Reports indicate the White House aims to raise these to 15% shortly, following the Supreme Court's overturning of previous tariff decrees last week.

Further geopolitical focus is on US-Iranian nuclear talks scheduled for Thursday in Geneva. The ongoing ambiguity continues to sustain a high-risk premium, providing a stable base of demand for silver.

Japanese Policy Provides Additional Momentum

The Asian trading session delivered further impetus. Japan’s Prime Minister Takaichi nominated two new Bank of Japan members, who markets perceive as expansionary and reflationary. The result was a steepening of the Japanese yield curve and a weaker yen. The prospect of prolonged accommodative monetary policy amplified demand in international precious metals markets.

Today’s advance of over 4% back toward $90 demonstrates how quickly buyers are stepping in at lower levels. After last week’s intraday plunge of around 35%, volatility is expected to remain elevated as long as political uncertainty intersects with tangible physical scarcity.