New York, January 29, 2026, 10:05 EST — Regular session
- SLV jumped roughly 2.5% in early trading after spot silver surged past $120 an ounce, marking a new high
- The dollar hovered close to multi-year lows following the Fed’s decision to hold rates steady, supporting metals prices
- Retail inflows into silver ETFs surged sharply; attention now shifts to the U.S. funding deadline on Jan. 30 and the jobs report due next week
Spot silver surged past $120 an ounce on Thursday, hitting a fresh record and boosting the iShares Silver Trust (SLV), an ETF backed by physical silver, during early New York trading. Around 10:00 a.m. ET, SLV climbed $2.62 to $108.22, while spot silver gained 2.3% to $119.24 after peaking at $120.44. The metal has jumped nearly 64% this year. “Precious metals are well in the limelight and investors always like to go where they can get high returns,” said Brian Lan, managing director at GoldSilver Central. 1
This matters because silver has become a crowded macro bet, driven by a softer dollar and renewed jitters over policy. The dollar index held steady around 96.33 on Thursday, not far from Tuesday’s four-year trough at 95.566, as investors grappled with U.S. policy uncertainty and the hunt for the next Fed chair. 2
Rate expectations are front and center. On Wednesday, the Federal Reserve kept its benchmark rate steady at 3.50%-3.75% in a 10-2 vote. Chair Jerome Powell noted that “the economy has once again surprised us with its strength.” Interest-rate futures shifted, pricing in a rate cut at the June meeting. Meanwhile, the 10-year Treasury yield edged up to about 4.25%. Traders keep a close eye on this mix—higher yields tend to dampen demand for non-yielding assets like silver. 3
In wider markets, demand for precious metals held strong as investors sought protection from policy and geopolitical risks. Global equities edged higher on upbeat earnings, yet gold climbed to a fresh record for the ninth day running and silver surged past $120. Oil meanwhile reached a four-month peak amid mounting U.S.-Iran tensions, Reuters reported. 4
Small investors have poured more fuel into the fire. According to Vanda Research, retail buyers snapped up about $171 million of SLV on Monday—nearly twice the one-day record set during the 2021 “silver squeeze,” when retail traders targeted heavily shorted stocks. Ashwin Bhakre, Vanda’s head of product, said the silver rush now outpaces even the classic AI trade, with SLV turnover running over 11 times normal levels. At the same time, the ProShares UltraShort Silver ETF (ZSL), which bets against silver, also saw heavy trading. 5
The dollar remains a key driver for metals. On Wednesday, the dollar index climbed 0.8% to 96.667 after the Fed kept rates steady and Treasury Secretary Scott Bessent reiterated support for a “strong dollar” policy. Still, the currency faces headwinds from tariff uncertainties and debates over Fed independence. “The Fed did nothing and did it with conviction,” said Karl Schamotta, chief market strategist at Corpay. 6
Silver miners mostly slipped despite strong bullion prices. Pan American Silver dropped roughly 0.9%, First Majestic edged down 0.3%, and Hecla Mining fell about 0.9% in early U.S. hours. This shows how stocks can lag behind the metal when traders shift positions or take profits.
The rally has been swift, and given silver’s relatively small market, price swings can get exaggerated. Should the dollar strengthen again or yields spike, momentum-driven investors might pull back quickly. On top of that, elevated prices risk squeezing industrial demand, a key pillar for silver.
Investors are focused on the U.S. data schedule and developments in Washington. Initial jobless claims dropped by 1,000 to 209,000 last week, while continuing claims declined to 1.827 million, according to Reuters. But with a January 30 deadline to fund the government looming, there’s a risk that upcoming data releases—including next Friday’s key employment report—could be disrupted. 7
