New York, January 28, 2026, 06:20 (EST) — Premarket
- Spot silver fell 0.2%, settling at $112.82 an ounce, down from Monday’s record high of $117.69
- The dollar hovered close to four-year lows, putting precious metals squarely in the spotlight ahead of the Fed.
- CME increased margin requirements on Comex silver futures following a spike in volatility
Spot silver, which reflects the cash price for immediate delivery, slipped 0.2% to $112.82 an ounce early Wednesday, holding close to Monday’s peak of $117.69. The dip happened while gold surged to new highs, leaving the broader metals market jittery. 1
Silver’s surge has closely followed the dollar’s decline. The dollar index lingered near its lowest point in four years, with one strategist labeling the situation a “crisis of confidence” in the U.S. currency after President Donald Trump dismissed concerns over the slide. 2
The Federal Reserve is set to unveil its policy decision at 2 p.m. EST, with Chair Jerome Powell scheduled to speak at 2:30 p.m. Markets widely expect a hold on interest rates, focusing on clues about the duration of this pause. “There is no urgency to lower rates aggressively,” said Seema Shah, chief global strategist at Principal Asset Management. 3
Silver has been making sharp moves. It surged 7.7% on Tuesday, hitting $111.84 after Monday’s record high. Citi bumped its near-term silver forecast to $150 an ounce, Reuters reported. Bank of America commodities strategist Michael Widmer cautioned that “there’s going to be a lot of volatility ahead,” warning of possible steep pullbacks despite solid fundamentals and ETF inflows that might push prices toward $170. CME also set a single-day metals complex volume record with 3,338,528 contracts traded on Jan. 26. 4
Leverage costs are climbing. A CME Clearing advisory from Jan. 27 revealed that margin requirements for Comex 5,000-oz silver futures have increased—rising to 11% from 9% for most traders, and to 12.1% from 9.9% for riskier accounts. Margins represent the cash traders need to lock in their futures positions; when those minimums rise, some traders have no choice but to reduce their exposure.
Silver-linked stocks tracked the metal’s jump. The iShares Silver Trust (SLV), an ETF backed by physical silver and traded like a stock, climbed 3.3% on Tuesday, ending the day at $101.59. 5
Physical-market demand adds to the strain. India, the largest silver market, saw imports surge 44% to $9.2 billion in 2025. Traders now speculate New Delhi might hike import duties again, as policymakers grow concerned about the trade deficit and the rupee. 6
Washington is also part of the equation. A shutdown of much of the U.S. government looms if funding runs out at 12:01 a.m. ET on Saturday, Jan. 31. Such a move could stall economic data releases and add fresh uncertainty to rates and currency markets. 7
Traders are set to focus on the Fed statement and Powell’s remarks later Wednesday, searching for clues that could alter the dollar’s decline—and dictate silver’s trajectory after hitting record highs.
