New York, January 12, 2026, 10:27 AM EST — Regular session
- Spot silver surged past $85 an ounce, sending silver-backed ETFs sharply higher.
- Markets jolted amid fresh doubts about the Federal Reserve’s independence and the dollar’s direction.
- Traders are gearing up ahead of Tuesday’s U.S. CPI release.
Shares of iShares Silver Trust (SLV), widely used to track silver prices, jumped roughly 6.9% to $77.40 in early trading Monday. Volume surged sharply as the rally in silver pushed gains across ETFs and mining stocks.
This rally isn’t just another metals bounce. Traders interpret the latest Washington headlines as a blow to confidence in the Fed, which usually drives money into assets considered safe havens when policy and inflation expectations shake up.
The latest twist came after Federal Reserve Chair Jerome Powell revealed the Fed had been hit with grand jury subpoenas linked to his past testimony about a renovation project, sparking a fresh wave of pressure from the Trump administration. Jan Hatzius, chief economist at Goldman Sachs, warned, “Fed independence is going to be under the gun,” as the dollar weakened and long-term U.S. bond yields edged higher. 1
Spot silver surged to a record $85.69 an ounce before easing back slightly to around $84, up about 5%, with gold also hitting new highs, Reuters reported. “Elevated uncertainty plays directly into the gold market,” said Michael Haigh, Societe Generale’s global head of commodities research. Ned Naylor-Leyland, fund manager at Jupiter Asset Management, added, “when silver captures flow, it really runs.” The Fed is widely expected to keep rates on hold at its January 27–28 meeting after a 75 basis point cut last year, though markets still price in more easing later this year, Reuters noted. 2
The rally swept through the silver complex. Sprott Physical Silver Trust (PSLV) climbed roughly 6.2%, with abrdn Physical Silver Shares ETF (SIVR) up about 6.8%. Silver miners also surged, notably Hecla Mining, First Majestic Silver, Coeur Mining, and Pan American Silver.
Silver occupies a tricky spot—half hedge, half industrial metal. That blend often fuels volatility, especially as funds rapidly shift money in and out of ETFs holding physical bullion.
It also means the market can seem calm until suddenly it’s not. When headlines shift, silver tends to overshoot—either way—largely because the market is smaller and liquidity can dry up fast.
The rally isn’t without risks. Should bond yields continue to climb and the dollar hold steady, metals that don’t offer interest face a tougher climb. Add a hotter inflation report, and sentiment could shift fast.
On Tuesday at 8:30 a.m. ET, December 2025 U.S. Consumer Price Index data hits the tape. Later this month, the Fed convenes for its policy meeting on January 27–28. 3
