New York, February 3, 2026, 13:41 EST — Regular session
- Spot silver surged 11.7% to $88.74 an ounce, bouncing back sharply after Friday’s record one-day drop
- CME Group’s margin increases and Kevin Warsh’s remarks put volatility back in the spotlight
- Silver-linked stocks, such as SLV and top miners, climb alongside the metal
Spot silver surged 11.7% to $88.74 an ounce by 11:40 a.m. ET Tuesday, breaking a two-day slide and sparking a broad rally in precious metals. Gold climbed 6.9% to $4,985.44, platinum rose 6%, and palladium gained 4.8%. The rebound came after silver’s historic 27% one-day crash on Friday, followed by a further 6% fall Monday, triggered by the CME raising margin requirements—the cash needed to maintain futures positions—and market jitters over Donald Trump’s nomination of Warsh to succeed Jerome Powell at the Fed in May. Peter Grant from Zaner Metals described the recent selloff as “corrective within the long-term uptrend.” Jeffrey Christian of CPM Group remains bullish, citing ongoing investor focus on economic and political risks. Reuters
The magnitude of the move is crucial as investors weigh how much of the recent rally was grounded in fundamentals versus pure momentum. Silver and gold had often been viewed as protection against “dollar debasement” worries. The Warsh announcement triggered a sharp unwind of crowded positions once liquidity dried up. Reuters
The bounce was evident fast in U.S.-listed proxies. iShares Silver Trust (SLV), an ETF tracking bullion prices, climbed 4.3% to $75.56 by early afternoon, after fluctuating between $75.20 and $80.70. Pan American Silver shares rose 3.0%, First Majestic Silver jumped 4.5%, and Hecla Mining gained 4.8%.
On Monday, spot silver dropped 9.2% to $76.81 an ounce, hitting a 15% loss earlier in the session amid margin changes shaking up futures markets and a stronger dollar. SP Angel analyst John Meyer called it a “rollercoaster ride,” while Deutsche Bank’s Michael Hsueh cautioned against seeing this as the start of a lasting decline. Meyer also noted ETF outflows as some investors pared back risk. Reuters
The floor remains uncertain. Silver soared to a record $121.6 on January 29 but then plunged as stop-loss orders triggered in a market with thin liquidity. Ole Hansen of Saxo Bank described the surge as a “massive retail frenzy.” Now, the outlook depends on demand from China and a drop in volatility. Analysts quoted by Reuters suggest a more sustainable price lies between $60 and $70. Reuters
On the futures market, CME’s February silver contract jumped roughly 12% to $86.01, with March climbing about 14% to $88.17. This sharp move highlights how quickly prices shift when forced selling ends—and traders reposition.
Silver usually tracks gold during bouts of investor protection buying, but its heavy industrial demand can trigger sharp moves when growth prospects wobble. That dynamic is clear now: safe-haven demand lingers, yet it’s largely margin calls and short-covering driving the action.
Some traders are eyeing Tuesday’s bounce to see if it draws retail buyers back into bars and coins, or if the rally is just a mechanical reset following the forced exit of leveraged longs during t
the margin hike.
The near-term outlook just got more complicated with U.S. data. The Bureau of Labor Statistics announced it won’t publish the January jobs report on Friday, Feb. 6, due to the partial federal government shutdown. That leaves rates and the dollar trading on thinner information heading into week’s end.
