New York, Feb 5, 2026, 06:04 (EST) — Premarket
Spot silver dropped again on Thursday, down 11.3% to $78.13 an ounce by 0920 GMT, after tumbling nearly 17% earlier in the session. This came as investors pared risk following a brief two-day rally. The metal slipped on a firmer U.S. dollar and easing geopolitical tensions, which reduced safe-haven appeal. “The market has not found an equilibrium yet,” said Julius Baer analyst Carsten Menke. Saxo Bank’s Ole Hansen pointed to heavy selling once silver failed to break past $90.50—a key resistance level where sellers typically emerge. Adding to the pressure: weaker Chinese demand ahead of Lunar New Year and reports of a sizable short position. Reuters
This shift is significant as silver now behaves less like a traditional safe-haven metal and more like a lightly traded risk asset, prone to sharp daily swings that can hit late buyers hard and trigger rapid deleveraging.
Volatility throws a wrench into hedging for manufacturers and investors alike, making futures contracts less reliable for locking in prices. It also boosts the chances that technical factors, rather than fundamentals, will trigger the next major move.
Commodity prices dropped broadly, pressured by metals and energy after a phone call between U.S. President Donald Trump and China’s Xi Jinping, alongside news of planned U.S.-Iran talks in Oman that helped ease geopolitical tensions, traders said. “What we’re seeing today are some aftershocks,” IG analyst Tony Sycamore remarked, noting that the revived U.S.-Iran dialogue had “removed some of the geopolitical premium” from commodities. OCBC strategist Christopher Wong pointed to a “self-reinforcing feedback loop” driving losses amid thin liquidity, as the dollar index hovered near a two-week peak ahead of anticipated rate holds by the European Central Bank and the Bank of England later Thursday. Reuters
A Reuters poll this week revealed analysts have raised their 2026 silver forecast to an average of $79.50 an ounce, a steep jump since the October survey, despite silver’s staggering 147% rally in 2025. The survey highlighted volatility risks as industrial demand eases, noting that some solar manufacturers appear to be cutting back on silver to reduce costs, while jewellery demand is also fading. Spot silver reached a record $121.64 on Jan. 29 before pulling back.
After a stretch of volatile trading, the next move might come from positioning and margin pressure rather than new data. A firmer dollar or another round of futures selling could weigh on spot prices, despite the presence of physical buyers lurking below.
Corporate buyers are shifting gears. Jeweller Pandora is launching platinum-plated versions of its bestsellers to dodge the wild swings in silver prices, which have started rattling its share price. “We are a jewellery brand, we are not a silver trader,” CEO Berta de Pablos-Barbier told Reuters. Reuters
Traders are bracing for a packed U.S. data calendar following the recent three-day government shutdown. The Bureau of Labor Statistics confirmed the January jobs report will drop Wednesday, Feb. 11. January’s CPI figures arrive Friday, Feb. 13, and December’s JOLTS job openings data is scheduled for Thursday.
