New York, Jan 27, 2026, 10:17 EST — Regular session
- Spot silver held close to $110 an ounce following Monday’s record peak, as volatility continued to fuel trading activity.
- Tariff threats, U.S. funding talks, and an upcoming Federal Reserve meeting continue to drive safe-haven demand.
- Major banks raised their short-term price targets, yet cautioned that any pullbacks might be steep.
Silver pushed back toward record highs early Tuesday in U.S. trading, following a wild start to the week. Spot silver, for immediate delivery, rose 5.7% to $109.80 an ounce by 9:41 a.m. EST, after hitting a record $117.69 on Monday, according to Reuters data. Citi raised its short-term silver price target to $150 an ounce. Meanwhile, Bank of America’s Michael Widmer cautioned that “there’s going to be a lot of volatility ahead, with risks of sharp pullbacks.” (Reuters)
Silver prices are behaving like a stress test for the wider market. Caught between safe-haven appeal and industrial demand, it can spike on a wave of fear only to falter as buyers hesitate.
The list of triggers is growing, not shrinking. Trade headlines keep popping up, Washington’s funding deadline looms, and the Fed is meeting. Investors are weighing how much wiggle room policymakers really have to guide markets before political noise starts affecting rates.
Monday’s jump was just one piece of a wider gold rush that drove prices past $5,100 an ounce, while silver touched $117.69 briefly. Reuters highlighted strong momentum buying and scarce physical supply. UBS analyst Giovanni Staunovo pointed out that Chinese prices were trading at a premium to London, cautioning that these elevated levels might dampen industrial demand. (Reuters)
Not all the demand is coming through the usual routes. Ole Hansen, who leads commodity strategy at Saxo Bank, noted that futures and ETF flows actually suggest net selling. That leaves “very strong and persistent buying from China” shouldering much of the price support. He pointed out the Shanghai market’s premium over London has surged past $14. Hansen also flagged the upcoming Lunar New Year holidays, when the Shanghai Futures Exchange closes from Feb. 16 to 23, as a possible moment for profit-taking to surface. (Business Insider)
Broader markets face a packed week ahead — major U.S. earnings reports, a Fed decision, and a dollar that’s been slipping unevenly. A Reuters “Trading Day” note pointed out the precious-metals rally “lost steam” late Monday, after silver jumped as much as 13%, warning that any pullback “could be messy.” (Reuters)
The silver market’s structure often amplifies price shifts. Barron’s noted that silver trading is much thinner than gold’s, so a sudden surge of buyers or sellers can trigger sharp swings — even if the fundamentals remain steady. (Barron’s)
The downside is clear. Should tariff tensions ease, a funding agreement come through smoothly, or the Fed push back on easing bets, silver might shed its “panic bid” fast. Plus, rising prices could hurt industrial demand—the usual support when safe-haven buying fades.
Traders are now focused on the Fed’s statement and Chair Jerome Powell’s press conference set for Wednesday, while Washington’s January 30 funding deadline and new tariff news loom in the background.
