Gold and silver prices have surged to new cyclical highs, with gold breaking past its March 20 record of $3,057.50 and silver climbing above $34.24, approaching its October high of $34.87. This rally is primarily driven by concerns about the upcoming “Liberation Day” tariffs scheduled for April 3, which markets appear to be underpricing according to Citi analysts.
The potential for higher-than-expected reciprocal tariffs is creating bullish conditions for precious metals. While current silver price differentials between U.S. and U.K. markets imply tariffs of 3-6%, Citi is “very bullish” on silver’s prospects if actual tariffs reach 15-30%. This expectation of significant market volatility next week, coupled with strong technical indicators, suggests continued upward momentum for both metals, with silver potentially reaching multi-decade highs if the tariff situation escalates as some analysts predict.