New York, January 27, 2026, 17:42 EST — After-hours
- Spot silver climbed roughly 8%, settling near $112 an ounce following a volatile session that hovered just under Monday’s record peak close to $117.7.
- Safe-haven demand rose amid tariff concerns and U.S. budget news, as traders prepared for the Federal Reserve’s policy signal due Wednesday.
- According to Vanda Research, U.S. retail investors funneled about $171 million into the iShares Silver Trust (SLV) on Monday.
Spot silver jumped roughly 8% in late U.S. trading Tuesday, trading near record highs following volatile swings throughout the day. The metal last changed hands near $112 an ounce, after fluctuating between about $103 and $113 earlier. 1
This shift is significant as silver has once again become a crowded macro trade. Investors flock to it both as a hedge amid political and rate turmoil and as a momentum bet when the dollar weakens.
Silver isn’t gold, and that makes a difference. The market’s thinner, and the metal plays a dual role — both a safe haven and an industrial commodity. That combination means even minor news can send prices swinging.
Precious metals surged as investors grappled with new tariff threats and the looming risk of a partial U.S. government shutdown before the Jan. 30 funding deadline. The Fed kicked off its two-day meeting amid this uncertainty. “There’s going to be a lot of volatility ahead, with risks of sharp pullbacks (in silver),” said Michael Widmer, commodities strategist at Bank of America. Meanwhile, Citi raised its short-term silver price target to $150 an ounce from $100, Reuters reported. 2
Equity market flows ramped up the momentum. Individual investors snapped up about $171 million of iShares Silver Trust on Monday, according to Vanda Research—almost twice the previous one-day record from the 2021 “silver squeeze.” “The chase in silver is now more intense than the classic AI trade,” said Ashwin Bhakre, Vanda’s head of product. The surge has even reached miners like Hecla Mining and Coeur Mining, the firm added. 3
Traders outside New York are picking up on tight physical supplies and robust demand from Asia. Ole Hansen, Saxo Bank’s head of commodity strategy, warned that industrial demand “could eventually begin to suffer” at these price points. BMI Research highlighted implied lease rates hovering near 3%—the cost to borrow physical silver—as a sign the market remains squeezed. Hansen also noted the Shanghai Futures Exchange will close from Feb. 16 to 23, a window when profit-taking might emerge. 4
Silver often bounces back quickly. If the Fed turns more hawkish than anticipated, or the dollar gains ground due to changes in rate expectations, the same quick traders who drove prices up could just as swiftly pull back.
The next hurdle is fast approaching: the Fed will unveil its rate decision at 2 p.m. ET on Jan. 28, with Chair Jerome Powell holding a press briefing at 2:30 p.m., CBS News reports. Markets will be dissecting Powell’s words closely, looking for clues on when rate cuts might start again—and whether this rally can keep going. 5
