Goldman Sachs: Trump's increase in steel and aluminum tariffs triggers a big pump in silver.

Gate News bot message, after the Trump administration announced that it would raise steel and aluminum tariffs from 25% to 50%, silver experienced a strong rise. This news led the market to expect that the U.S. government might take similar trade protection measures on other key metals (such as silver), thereby boosting the safe-haven and alternative demand for silver.

Goldman Sachs futures trader Robert Quinn said that the news of the U.S. increase in steel and aluminum tariffs triggered significant long positions in the silver futures market. Total open interest in silver futures surged by $2.8 billion, the biggest two-day increase in the past year. Although the EFP (futures and spot spread) is volatile, it tends to be a premium overall, indicating that the market's expectations for the near-term spot tightness have increased. At the same time, the rise in the price of silver has pushed programmatic trend-following funds to enter the market.

In addition, the options market also shows a bullish stance: three-month implied volatility has surged; the 25-Delta Put-Call Skew has declined, indicating that investors are more willing to hold call options; the ratio of 5 Delta to 25 Delta call options has rebounded, showing an increase in bets on extreme pumps.

Source: Jinshi