Silver prices managed to break their record high nearing $100 per ounce driven by strong demand as geopolitical conflict tensions escalated.
At 2.30 pm, silver was at $98.607, up about 2.77% since it opened early Friday in Asian trading.
The price surge came after US President Donald Trump's threats regarding Greenland escalated tensions with Denmark and its NATO allies.
This development came in the wake of Washington's new warnings against Iran, Trump's meeting with Ukrainian President Volodymyr Zelensky, and talks between Russian President Vladimir Putin and US officials.
Investors shifted to real assets as the US dollar was affected by the changing geopolitical dynamics between the US and Europe over the Greenland issue. Concerns also grew that Europe could potentially use its large holdings of US assets as an instrument of geopolitical pressure.
Meanwhile, the US Fed is widely expected to keep interest rates unchanged at its meeting next week, supported by signs that the economy remains resilient.
However, the market is still pricing in the possibility of two more rate cuts by the end of the year.
President Donald Trump is expected to make a decision on the appointment of a new Fed chairman after the interview process for candidates is completed. The appointment of someone who is more hawkish could potentially reinforce expectations for further monetary easing.
Meanwhile, silver prices have also been supported by a significant price correction in the past, strong retail buying, and tighter Chinese export controls, which are limiting global supplies of the metal.
