Silver prices rose more than 6% on Monday. This rally significantly outperformed gold and boosted the iShares Silver Trust (SLV). Investors expect improved trade relations following a scheduled summit between President Trump and President Xi in Beijing later this week.
Markets anticipate the summit will benefit silver due to its heavy use in industrial supply chains. Key sectors include solar panels, electronics, and electric vehicles. The gold-to-silver ratio compressed, signaling silver's relative strength over traditional safe-haven trades.
Ongoing tensions with Iran maintained focus on inflation risks and provided underlying support for precious metals. Technical analysts reported that silver prices broke through key resistance levels. This breakout potentially indicates a broader market recovery.