• Silver prices plummet 9% to $76.13/oz, extending a sharp retreat from January 2026 peaks above $120/oz.
  • The drop is driven by profit-taking, a stronger US dollar, and shifts to equities amid improved risk appetite, despite persistent industrial demand and supply shortages.
  • Prices remain highly volatile, with silver up 153% year-over-year, but facing pressure from Federal Reserve policy signals and economic data.

Spot silver prices have tumbled sharply, with the metal last down 9% at $76.13 per ounce, according to market data. This decline continues a dramatic pullback from a record intraday high of $121.785 reached on January 29, 2026, which had capped a rapid surge past $100/oz in late January. The current price reflects ongoing volatility in precious metals markets, though it stands above the $74.00 low hit on January 30, when silver crashed nearly 27% in a single day.

Efforts to stabilize the market have hit a snag, with prices swinging wildly in recent sessions. After partially recovering to $81.95/oz on February 10 and $85.65/oz on February 11—a 4.6% daily gain—silver slipped again to $82.14/oz on February 12, down 2.55% for the day. People familiar with the matter attribute the latest drop to profit-booking after silver tripled from around $50.96/oz in late November, alongside a rebound in US dollar confidence following Kevin Warsh's nomination as Federal Reserve chair in late January. "Investors are locking in gains after an unprecedented rally, but the underlying fundamentals haven't changed," said one trader, who requested anonymity due to lack of authorization to speak publicly.

Without a sustained recovery, silver could test lower levels if the dollar strengthens further. The metal's smaller market size compared to gold amplifies its volatility, making it sensitive to shifts in sentiment. Broader precious metals trends show gold at $5,040/oz, down from a peak of $5,594, while platinum trades at $2,100/oz and palladium at $1,730/oz. In a brief statement, an analyst noted that silver's industrial demand and supply shortages, with London inventories shrinking amid structural deficits, provide some support. However, the focus remains on Fed rate signals, with expectations of two cuts in 2026 tied to jobs and inflation data, which could influence haven demand.

Attempts to reach out to major silver ETF managers for comment were unsuccessful. Looking ahead, experts forecast short-term pressure but long-term strength, with some predicting averages of $81/oz in 2026—double 2025 levels—or even up to $200/oz if rate cuts materialize and deficits persist. J.P. Morgan has highlighted structural constraints despite Fed shifts, suggesting the current dip may offer buying opportunities for those willing to navigate the turbulence. Corrections: An earlier version misstated the year-over-year gain; it is 153%, not 169%.