London, February 20, 2026, 11:14 GMT — Regular session
- Spot silver jumps 2.8% to $80.57 an ounce in early European trading
- Precious metals moved higher, with investors factoring in Middle East tensions and a dip in yields.
- Attention now turns to U.S. core PCE inflation figures, along with GDP data, both expected later Friday.
Silver surged almost 3% in European trading Friday, clearing the $80 mark as bullion prices caught a tailwind from lower U.S. yields and fresh anxiety over U.S.-Iran friction. Spot silver was last up 2.8% at $80.57 an ounce at 0941 GMT. Gold tacked on 0.7% to $5,032.49. Platinum and palladium moved up roughly 2.3% apiece. “Yields are down, reducing the opportunity cost of holding bullion,” noted Peter Fertig, analyst at Quantitative Commodity Research. Reuters
Right now, silver’s in a strange spot—sometimes acting like a safe harbor when nerves are frayed, other times just another industrial metal reacting to rates and growth. Heading into the weekend, with a major U.S. data drop looming, traders are jittery and positions keep shifting.
Rates drive the action. Lower yields shrink the cost of owning a metal that pays no interest. But if yields jump, silver tends to move quickly.
The dollar’s been tough to ignore, climbing roughly 1.1% for its strongest weekly move since October. A string of upbeat U.S. data releases, a Fed less dovish than some anticipated, and the latest bout of geopolitical jitters all fueled the rally. “You can sort of see why the dollar’s managed to bounce,” said Dominic Bunning, Nomura’s head of G10 FX strategy. Reuters
The dollar strengthened, which tends to push up the cost of dollar-denominated metals for overseas buyers. Yet silver moved higher anyway—a sign that safe-haven demand is likely driving gains at this point.
Silver’s rally is starting to squeeze the solar sector, which uses around 196 million troy ounces—about 17% of total global demand—and is now facing more imminent substitution risk. Panel producers are ramping up moves to replace silver with copper, following a roughly 130% price jump over the last year. “Silver is the greatest contributor to the increased cost of manufacturing solar panels,” said Derek Schnee, senior commercial solar consultant at JK Renewables. Ben Damiani, CTO at Cherry Street Energy, estimated U.S. silver-paste costs per 450-watt module have climbed to about $17.65, compared with just $5.22 at the start of 2025. China’s LONGi, meanwhile, has announced it will roll out mass production of its base-metal tech between April and June. Reuters
Traders now look for U.S. data to see if it keeps the dollar in demand and nudges yields higher—a combo that tends to dull appetite for non-yielding metals. Softer headlines over the weekend could take some heat out of the hedge trade as well.
Markets are watching for the next data hit at 13:30 GMT (8:30 a.m. EST), with the U.S. set to publish December’s Personal Income and Outlays report—core PCE price index included—paired with the advance Q4 GDP estimate.
