New York, February 4, 2026, 13:36 (EST) — Regular session
Spot silver climbed 1.6% to $86.48 an ounce Wednesday, extending gains after a steep drop earlier this week. Traders stayed cautious on U.S. yields and the dollar’s moves. Gold slipped slightly. 1
The move matters because silver has become a key stress test for leverage and liquidity within the precious-metals sector. A shift beginning in futures markets can rapidly cascade into ETFs, mining stocks, and even broader risk assets as traders rush to reduce their positions.
Silver straddles two roles. It acts like a safe haven when politics and interest rates grab attention, yet it relies on industrial demand when growth talk heats up. That combination can send its price swinging whenever the dollar or rate forecasts change.
Spot silver dropped 9.2% to $76.81 on Monday, after tumbling as much as 15% earlier in the session. The metal’s losing streak now totals about 37% since last week’s record high. “Gold and silver are on a rollercoaster ride,” said John Meyer, an analyst at SP Angel. 2
Silver soared to a record $121.6 on January 29, only to plunge more than 25% the very next day. The sharp drop triggered a wave of technical selling and stop-loss orders, flooding the market with sell signals. Ole Hansen of Saxo Bank described the run-up as a “massive” retail frenzy, adding that the metal’s next support hinges on demand from China and reduced volatility. StoneX’s Rhona O’Connell pointed to critical chart support around $66 but cautioned that silver “is always a death trap.” 3
Analysts polled by Reuters recently raised their 2026 silver price forecast to $79.50 an ounce, though they warned of potential volatility as demand slows. Julius Baer’s Carsten Menke pointed out that solar panel manufacturers are cutting back on silver use to save costs, while jewellery demand is also waning. 4
Equities swung sharply as well. Canada’s main stock index gained 0.6% Tuesday, lifted by a rebound in precious metals that sent the materials sector up 4.1%. “We may not be out of the woods yet,” warned Brian Madden, chief investment officer at First Avenue Investment Counsel. 5
The bounce isn’t without its risks. A stronger dollar or a new spike in yields could still weigh on the metal, which offers no interest. Plus, rising margin requirements might push traders to either add cash quickly or slash positions.
Silver bounced back Tuesday, climbing 4.8% to $83.23 after tumbling a record 27% on Friday and sliding another 6% Monday. Peter Grant, vice president and senior metals strategist at Zaner Metals, called the recent plunge a “corrective” move within a longer-term uptrend. Jeffrey Christian of CPM Group expects prices to pick up again, though at a steadier pace. Traders now await clarity on delayed U.S. economic data, after the Bureau of Labor Statistics postponed the January jobs report due to the partial federal government shutdown. 6
