New York, January 27, 2026, 13:42 EST — Regular session
Spot silver surged 4% to $108.05 an ounce by 11:35 a.m. EST Tuesday, following a record high of $117.69 in the previous session. Traders are digesting President Donald Trump’s new tariff proposals on South Korean imports alongside a looming U.S. government funding deadline. Silver has rallied over 50% so far in 2026, after jumping 146% last year. Bank of America’s Michael Widmer warned of “a lot of volatility ahead” amid the ongoing Federal Reserve meeting. Citi bumped its short-term silver target sharply, from $100 to $150 an ounce. (Reuters)
Moves like that are unusual, even for silver. The metal usually acts as a safe haven amid political and policy turmoil, but it’s also tied to industrial demand, fluctuating with factory output.
It’s the pace that’s driving the moves. Large daily swings increase the chance of margin calls — the extra cash traders need to maintain their leveraged positions — which can quickly turn a pullback into a sharper drop.
Retail traders are snapping up U.S.-listed products, with flows now matching the frenzy seen in popular tech stocks, according to Vanda Research. On Monday, individuals net bought around $171 million of the iShares Silver Trust (SLV). Ashwin Bhakre from Vanda noted that “the chase in silver is now more intense than the classic AI trade.” Activity has also surged in the ProShares Ultrashort Silver ETF, which gains when silver prices drop. Meanwhile, Hecla Mining and Coeur Mining have cracked the top 50 most actively traded stocks, Vanda said. (Reuters)
China has played a major role in driving silver prices higher. Ole Hansen, Saxo Bank’s head of commodity strategy, noted that industrial demand—which accounts for about 60% of silver use in a typical year—“could eventually begin to suffer,” even as Chinese purchases pushed Shanghai prices to a premium exceeding $14 above London benchmarks. BMI Research estimates silver lease rates—the cost to borrow physical silver—at around 3%. Hansen also cautioned that profit-taking might emerge ahead of the Shanghai Futures Exchange’s Lunar New Year shutdown, set for Feb. 16-23. (Business Insider)
Derivatives volumes have climbed sharply alongside the price rally. CME Group reported its metals complex hit a single-day record with 3,338,528 contracts traded on Jan. 26 — an 18% jump from the previous high. Managing Director Jin Hennig noted clients are increasingly using the markets “to hedge and adjust precious metals exposure.” Micro Silver futures, which are smaller-sized contracts, also set records with 715,111 contracts traded in a day and open interest reaching 35,702, CME said. The exchange confirmed plans to launch 100-Ounce Silver futures on Feb. 9, pending regulatory approval. (PR Newswire)
Gold’s surge to new highs has pulled other metals along, yet silver’s acting more like a momentum play than a steady inflation hedge. That approach can pay off climbing, but it can also reverse sharply.
Silver’s industrial role adds a layer of complexity. When prices climb, manufacturers may pull back on demand, even though investor interest continues to drive market moves.
The risks are clear on the tape. A sudden easing of tariff concerns, a change in Washington news, or an unexpected move from the Fed could spark a steep sell-off. That’s especially true with leveraged positions piling up and volatility running high.
Wednesday brings the next major event. The Fed’s policy statement drops at 2 p.m. EST, with Chair Jerome Powell speaking at 2:30 p.m. EST, per the central bank’s schedule. Traders are bracing for this, viewing it as a crucial moment for a market that’s lately been swayed by headlines on silver. (Federal Reserve)
