Goldman Sachs: Trump's increase in steel and aluminum tariffs triggers a surge in silver

After the Trump administration announced an increase in steel and aluminum tariffs from 25% to 50%, silver experienced a strong surge. This news raised market expectations that the U.S. government might implement similar trade protection measures on other key metals, thereby boosting safe-haven and alternative demand for silver. Goldman Sachs futures trader Robert Quinn stated that the news of the U.S. increasing steel and aluminum tariffs triggered significant long positions in the silver futures market. The total open interest in silver futures surged by $2.8 billion, marking the largest two-day increase in the past year. Despite significant fluctuations in EFP, the overall trend has been in contango, indicating an increased market expectation of recent spot tightness. Meanwhile, the rise in silver prices has driven algorithmic trend-following funds to enter long positions. Additionally, the options market has shown a bullish stance: three-month implied volatility soared; the 25-Delta put-call skew fell, indicating that investors are more willing to hold call options; and the ratio of 5 Delta to 25 Delta call options rebounded, showing an increase in bets on extreme upward movements