New York, Jan 29, 2026, 13:37 (EST) — Regular session
- Spot silver slid roughly 1%, after reaching $121.65/oz and dropping to $106.81
- SLV ETF down nearly 2%, dragged lower by weakness in silver mining stocks
- Volatility remains high as traders juggle Fed rate expectations and political risks
Silver pulled back Thursday following a fresh record, swinging sharply as U.S. markets entered the afternoon session. Spot silver — the immediate delivery price — slipped 1.15% to $115.46 an ounce after peaking at $121.65 and dropping to a low of $106.81, according to data.
The range is crucial here since silver trading has quickly attracted a crowd, and crowded trades often reverse sharply when leverage collides with a sudden dip. For funds, miners, and hedgers alike, a one-day swing like this can trigger rebalancing and prompt new selling pressure.
This week, macroeconomic factors and politics are pulling on the same threads — rates, the dollar, and risk appetite — while traders flip between chasing momentum and pulling back. Silver, unlike large bond or equity markets, isn’t very deep, so it can jump sharply without warning.
Spot silver plunged more than 6% to $108.84 early in the session, after hitting a record high of $121.64. Gold also retreated from a peak of $5,594.82 as investors locked in gains across precious metals, according to Reuters prices. “We are seeing a dramatic sell-off after precious metals made new recent all-time highs,” said David Meger, director of metals trading at High Ridge Futures. Brian Lan, managing director at GoldSilver Central, noted some traders were cashing out to offset losses in equities and bitcoin. Marex analyst Guy Wolf added that the physical market was “basically on strike.” Reuters
Wednesday’s rally set the tone. Spot silver jumped 3.3% to $116.69, after hitting a record $117.69 on Monday. Analysts at Standard Chartered warned several signals suggest a near-term pullback. “The rally in the precious metals has kind of taken on a life of its own at this point,” said Peter Grant, vice president and senior metals strategist at Zaner Metals. Reuters
Silver has surged more than 50% this year, following a 146% jump in 2025, with banks raising their price targets as buying picked up. Citi bumped its near-term silver forecast to $150 an ounce from $100. Michael Widmer, commodities strategist at Bank of America, warned of potential turbulence ahead, saying, “There’s going to be a lot of volatility ahead, with risks of sharp pullbacks (in silver).” Reuters
The Federal Reserve kept its policy rate steady Wednesday, holding it between 3.50% and 3.75%. Chair Jerome Powell highlighted the economy’s strength and noted reduced risks to inflation and jobs. Meanwhile, interest-rate futures are betting on a rate cut at the Fed’s June meeting, Reuters reported.
President Donald Trump said Thursday he intends to reveal his pick for the next Federal Reserve chair next week, with Jerome Powell’s term ending in May. “We’re going to be announcing the head of the Fed,” Trump stated, adding the nominee “will do a good job.” Reuters
Silver-related stocks took a hit in the regular U.S. session. The iShares Silver Trust ETF (SLV), backing physical silver, dropped 1.7% to $103.79. Among miners, First Majestic Silver plunged 5.6%, Pan American Silver slipped 4.8%, and Hecla Mining fell 2.3%, per market data.
That same leverage lifting gains can trigger forced selling when volatility jumps, particularly if risk assets remain shaky. Should the rate outlook toughen once more—or if speculative traders pull back—silver might slide toward this week’s lower range.
Traders are focused on Trump’s Fed chair pick set for next week and the U.S. funding deadline on Jan. 30 in Washington. Any fresh geopolitical news could also shake the safe-haven demand.
