• Silver spot prices have declined approximately 7% to $86.45 per ounce, reflecting significant selling pressure in precious metals markets.
  • The drop follows a dramatic rally earlier in the year, with the metal reaching a historic peak of $121.64 per ounce in January 2026 before retreating.
  • CME Group (CME)'s decision to raise initial margin requirements for March 2026 silver contracts to $25,000 per contract forced smaller traders to liquidate positions, triggering a cascade of forced selling.

Silver prices extended their decline in late February 2026, with spot silver last down 7% at $86.45 per ounce, according to market data. The sharp correction represents profit-taking after the metal hit overbought conditions, with the 14-day Relative Strength Index (RSI) remaining above 70 for extended periods. On February 26, 2026, silver was trading at $87.07 per ounce, consistent with the current decline.

Efforts to stabilize the market have hit a snag as the margin hike and subsequent volatility disproportionately affected smaller traders and retail investors lacking sufficient capital reserves. "The decline occurred during a period of thin holiday liquidity, which amplified price movements in both directions," said one market analyst familiar with the matter, who spoke on condition of anonymity. While the correction is steep, analysts view it as a healthy technical pullback rather than a reversal of the multi-year uptrend.

Despite the recent pullback, silver remains substantially higher than its starting point, having gained over $55 per ounce compared to one year ago when it traded at $31.85 per ounce. The metal experienced a remarkable 147% surge in 2025, opening the year at $28.92 and closing above $72 per ounce, breaking through a decade-long price ceiling. J.P. Morgan (JPM) Global Research projects silver prices will average $81 per ounce in 2026—more than double its 2025 average.

Strong structural demand continues from sectors including solar energy, electric vehicles, AI data centers, and electronics manufacturing, with China alone consuming over half of global industrial silver. Earlier in the year, escalating Middle East tensions involving the U.S., Israel, and Iran had driven investors toward silver as a safe-haven asset, supporting higher prices. The currency environment has also contributed, with a weaker U.S. dollar supporting dollar-denominated commodity prices.

Analysts note that maintaining price levels above $95 per ounce could trigger movement toward the $100 mark. Key technical support and resistance levels vary by region: North Indian markets show support at ₹2,85,000 per kg with resistance at ₹3,00,000 per kg. Investors utilizing systematic investment plans (SIPs) in silver ETFs are recommended as a means to manage entry timing risk, according to industry sources. Attempts to reach CME Group for further comment were not immediately successful.