Silver Price edges higher to all-time high above $52.50 as short squeeze deepens

• Silver price extends its upside to around $52.60 in Tuesday’s early Asian session, up 0.44% on the day. 

• Rising demand for precious metals worldwide deepened a historic short squeeze in the London market, boosting the Silver price. 

• Fed’s Paulson signaled support for two more 25 bps rate cuts in 2025. 

Silver price (XAG/USD) attracts some buyers to near $52.60 during the early Asian session on Tuesday. The white metal has reached a fresh all-time high, surpassing its previous peak from 1980, as a historic short squeeze in London intensified. 

The rally in Silver price is bolstered by concerns over a depleting silver inventory in London, which drove prices to a premium over those seen in New York and prompted traders to ship metals across the Atlantic for a profit.  

Additionally, global trade uncertainties have fueled safe-haven demand, supporting the precious metal. US President Donald Trump on Friday threatened an additional 100% tariff on Chinese goods from November 1 in retaliation for new export controls Beijing is planning for valuable rare earth minerals.  

Dovish remarks from the Federal Reserve (Fed) officials also lift the Silver price. Philadelphia Fed new President Anna Paulson said on Monday that rising risks to the job market argue for more interest rate cuts by the US central bank, as trade tariffs now appear unlikely to push up inflation as much as expected. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding precious metal. 

On the other hand, renewed US Dollar (USD) demand and improved risk sentiment could weigh on the USD-denominated commodity price in the near term. Trump changed his rhetoric on China on Sunday, saying that China’s economy “will be fine” and that the US wants to “help China, not hurt it.”