New York, Jan 16, 2026, 10:08 ET — Regular session
Spot silver dropped to roughly $89.38 an ounce on Friday, slipping 3.2% for the day and deepening its retreat following this week’s surge to new highs. 1
Silver’s plunge is significant, given it’s been one of the best-performing metals this month. The market now seems to be weighing how much of the rally came from safe-haven demand versus pure momentum. After hitting a record $93.57 in the prior session, silver reversed course. Marex analyst Edward Meir flagged profit-taking and easing Middle East tensions as major factors dragging prices down. 2
A stronger dollar has increased pressure. The dollar index climbed to 99.31 on Thursday, hitting its highest level since Dec. 2. This followed U.S. initial jobless claims dropping to a seasonally adjusted 198,000, well below forecasts, while traders pushed back expectations for the next Fed rate cut to June. 3
Silver’s jump earlier this week was linked to weaker U.S. inflation figures and growing expectations of rate cuts, Reuters reported. Geopolitical strains, strong industrial and investment demand, plus shrinking inventories, also played a role. 4
Silver exposure on U.S. exchanges followed the decline. The iShares Silver Trust slipped $2.27, landing at $81.05 in early trading.
The Fed backdrop has returned to the spotlight. San Francisco Fed President Mary Daly described policy as being in a “good place,” urging that calibration remain “deliberate.” Her remarks bolstered bets on a steady approach at the upcoming meeting. 5
The central bank is set to decide on rates Jan. 27-28, with investors closely monitoring for changes in officials’ outlook on how long they plan to keep rates unchanged. 6
Silver bulls face a risk as steady U.S. economic data keeps the dollar strong and real yields high, putting pressure on metals that don’t pay interest. A quieter geopolitical backdrop could also drain some of the “insurance” buying that’s supported silver lately.
Traders are focused on whether silver can hold steady near $90 following recent volatility, while also gauging how the Fed’s signals from the Jan. 27-28 meeting influence the dollar and expectations for rate cuts. 7
