London, Jan 17, 2026, 17:46 GMT — Market closed
- Silver gave up some gains on Friday following new record highs reached earlier this week
- Silver-linked ETFs have seen heavy retail inflows, pushing positioning into crowded territory
- With a U.S. holiday shortening the week, traders turn their attention to the Fed meeting set for later in January
Spot silver, for immediate delivery, dropped 2.9% to $89.65 an ounce on Friday, following a record high of $93.57 in the previous session. Marex analyst Edward Meir described it as “a general retreat in the commodity complex after weeks of aggressive gains, with some profit-taking.” 1
The decline followed a steep rally that drew a surge of individual investors. Vanda Research found retail traders bought $921.8 million worth of silver-backed ETFs over the last 30 days. On Wednesday alone, the iShares Silver Trust recorded a $69.2 million inflow from retail buyers. 2
Silver’s crowded trade gains significance as attention shifts back to interest rates. Fed Vice Chair Philip Jefferson noted that “the current policy stance leaves us well positioned,” highlighting that rate cuts aren’t guaranteed as policymakers assess fresh data. 3
San Francisco Fed President Mary Daly echoed this view, saying policymakers must be “deliberate” in adjusting policy. For silver, which doesn’t yield income, that’s a challenge when bonds offer more appealing returns. 4
Liquidity kicks off lighter than normal this week. U.S. equity markets close Monday in observance of Martin Luther King Jr. Day, so the first full risk session is set for Tuesday. 5
Futures traders must also navigate holiday quirks. According to CME Group’s schedule, settlement prices won’t be calculated or released on Monday, making position marking and margin calls trickier. 6
The rally’s speed hasn’t left much margin for error. Bank of America’s commodity strategist Michael Widmer put the “fundamentally justified” silver price near $60/oz but cautioned that retail-driven flows might still trigger sharp swings. 7
The next hurdle is data. Thursday brings U.S. weekly jobless claims and a batch of housing reports, landing amid a market on edge over growth and interest rate shifts. 8
Looking ahead, focus shifts to the Federal Reserve’s Jan. 27-28 meeting, with traders eager for clearer clues on the duration of the pause — and whether silver’s recent dip might deepen. 9
