On Monday morning, silver prices experienced a significant upswing, propelling the iShares Silver Trust (AMEX: SLV) exchange-traded fund to a fresh all-time high. As silver prices breached the $85 mark per ounce, the market reacted to escalating tensions involving the White House, the Justice Department, and Federal Reserve Chair Jerome Powell.
The catalyst behind this price movement stemmed from Powell's disclosure in a Sunday evening video that the Federal Reserve had been served grand jury subpoenas in connection with his congressional testimony related to the central bank’s $2.5 billion headquarters renovation. Powell characterized the subpoenas and alleged threats of criminal indictment as tactical moves underpinned by political motives aimed at influencing interest rate decisions.
This development unsettled equity futures on Monday morning and triggered a sharp response in precious metal markets. Gold prices surged to record highs, while silver futures climbed approximately 7%, trading above $84 per ounce. For investors in the iShares Silver Trust, which physically holds silver bullion, these dynamics created a favorable environment.
The underlying conflict has introduced apprehension that monetary policy might become subordinate to transient political agendas. Such a scenario raises concerns regarding increased inflationary pressures, the dominance of fiscal considerations over monetary discipline, and potential depreciation of the U.S. dollar. If interest rates are compelled to prioritize economic growth rather than price stability, investors often seek refuge in hard assets with finite supply and no credit risk, such as silver.
Silver's price reactions tend to be magnified relative to gold’s movements due to a comparatively smaller and less liquid market. Inflows into silver ETFs can precipitate pronounced price increases. Beyond its function as a safe haven, silver's industrial applications—including its use in solar panels, electronics, and battery technologies—maintain steady demand. This industrial demand supports silver's value proposition even amid fluctuating economic growth outlooks, particularly when confidence in institutional independence, including that of the Federal Reserve, is compromised.
Data from Benzinga Edge highlights the strength of the current silver rally. The iShares Silver Trust ETF exhibits a high Momentum score of 97.15, with its short-, medium-, and long-term price trends all firmly positive, reflecting robust investor interest and upward price momentum.
At the latest market check on Monday, SLV shares had increased 7.12%, trading at $77.53, marking a new 52-week peak. This performance underscores growing investor appetite for silver amid a climate shaped by political confrontation and uncertainty surrounding monetary policy direction.