New York, Feb 3, 2026, 06:02 ET — Premarket
- Silver surged in early trading following a historic two-day plunge in precious metals.
- Traders cite forced deleveraging and increased futures margins following the shock from the Fed chair nomination.
- Attention turns to the U.S. government shutdown, the postponed jobs report, and what lies ahead for the dollar.
Silver bounced back hard on Tuesday, soaring 9.2% to $86.70 an ounce following last week’s record single-day plunge and another sharp slide Monday. Gold shot up as well, with spot prices climbing 5.5% to $4,921.42.
The snapback is significant as it comes after a harsh unwind that wiped out leveraged bets placed during a rapid rally. Moves this large often push funds and retail traders to slash positions fast, particularly when exchanges raise collateral requirements for futures.
The initial strain appeared in Asia, where borrowing-driven speculation pushed prices higher before margin calls hit as values fell. This ripple effect has now spread beyond metals, shaking wider risk markets.
The catalyst was as much political as technical. When U.S. President Donald Trump nominated Kevin Warsh to head the Federal Reserve in May, it shook markets that had been heavily betting on aggressive rate cuts—and then scrambling to adjust the dollar’s value.
Silver jumped roughly 13% to $86.67 an ounce in U.S. futures trading. Russ Mould, investment director at AJ Bell, noted buyers treated the recent selloff like a “New Year’s sale,” indicating dip-buying is still firmly in play despite the swings. MarketWatch
Monday wasn’t exactly a “sale.” Spot silver dropped 9.2% to $76.81, hitting a low about 15% down at one point. That puts it around 37% below last week’s record high of $121.64, according to Reuters calculations. “Gold and silver are on a rollercoaster ride,” said SP Angel analyst John Meyer. Reuters
Silver’s price swung wildly within one session. Business Insider data revealed it moved from $71.73 up to $87.88 on Monday, closing at $79.30.
Certain downstream companies are seeing the silver price drop more as a cost issue than a market signal. Pandora revealed it has secured most of its silver costs for 2026. A Reuters report also highlighted the jeweller’s heavy dependence on recycled silver; it’s set to release quarterly earnings on Feb. 5.
The rebound hasn’t quieted the tape. If the dollar pushes up again or forced liquidation ramps up, Tuesday’s bounce might just be a short breather—especially with investors still trimming risk amid uneven U.S. data.
Data risk has taken center stage. The Labor Department announced the January U.S. jobs report won’t come out as planned due to a partial government shutdown. It was originally scheduled for Friday, Feb. 6, per the agency’s calendar.
Traders are focused on whether Washington will end the shutdown quickly enough to keep the jobs report on track — and if gold’s rally will pull silver along or leave it stuck in the volatile swings that just ruined positions.
