On Monday, the iShares Silver Trust ETF, traded under the symbol SLV on the New York Stock Exchange, experienced a significant price increase as silver commodities broke through historical price ceilings. The upward trajectory of silver was primarily propelled by intensifying geopolitical tensions and mounting concerns over the stability of financial markets worldwide.
The market witnessed a fresh trigger over the recent weekend when then-President Donald Trump announced the intention to impose a 100% tariff on Canadian imports, contingent upon Canada finalizing a new trade agreement with China. This announcement stemmed from Canadian Prime Minister Mark Carney's diplomatic visit to Beijing, where he secured a preliminary arrangement involving tariff reductions on Chinese electric vehicles. In exchange, China’s tariffs on Canadian canola were poised to decrease, reflecting a mutual trade concession.
Nevertheless, this arrangement drew a firm rebuke from China on the following Monday. Chinese officials clarified that their engagements with Canada do not target any other nation specifically. They advocated for an international approach grounded in cooperation and mutual benefit rather than a zero-sum game mentality, according to reports by Reuters.
Alongside these trade dynamics, the United States faces palpable domestic political turmoil as the possibility of another government shutdown looms. Just months after enduring the protracted 43-day shutdown in late 2025, the government now edges toward another closure. President Trump indicated that the forthcoming shutdown would likely be attributable to Democratic opposition. Tensions escalated following the Senate Democrats' rejection of funding for the Department of Homeland Security, in the aftermath of a fatal incident involving U.S. Border Patrol agents in Minneapolis.
Market-based prediction tools, such as those offered by Kalshi, have integrated this political risk into their pricing models. The platform has attracted over $8 million in wagers on a contract betting on a government shutdown by January 31, with current odds suggesting approximately a 77% likelihood of at least a partial federal shutdown.
Adding complexity to the financial landscape, the Federal Reserve is scheduled to hold its policy meeting this week. Expectations strongly lean toward the central bank maintaining current interest rate levels. However, this outlook is clouded by a criminal investigation targeting Fed Chair Jerome Powell, linked to the Trump administration. The President has previously exerted pressure on Powell to implement rate reductions.
Amid this backdrop of geopolitical friction, domestic political uncertainty, and institutional challenges, precious metals markets have seen an influx of new participants. Adrian Ash, head of research at BullionVault, noted that a surge of first-time investors from regions including Asia and Europe are actively increasing their holdings in gold and silver, signaling a flight to tangible assets for wealth preservation and risk management.
In terms of market performance, iShares Silver Trust shares rose sharply by 12.86% to reach $104.71 on Monday, marking a fresh 52-week high. This price development aligns with the broader rally in silver prices, underscoring heightened investor interest. The data provided by Benzinga Pro confirms SLV trading at new yearly peaks, reflecting strong momentum in precious metals investment strategies.