• Silver surges to $77 per ounce, marking a 4.75% intraday gain as it rebounds from recent lows.
  • The rally follows a sharp correction from 2025-2026 highs above $120, driven by profit-taking after record gains.
  • A structural deficit of 67 million ounces persists for the sixth consecutive year, underpinning prices despite volatility.

Silver prices climbed to around $77 per ounce on Wednesday, up 4.75% intraday, as the precious metal recovers from a steep sell-off that saw it tumble from all-time highs near $120-$121 per ounce in early 2026. The recent volatility has been intense, with silver pulling back sharply—down 36% from its peaks—and trading between $73-$78 as of mid-February 2026, according to market data.

Efforts to stabilize the market have been challenged by thin trading conditions, particularly during periods without Chinese market support. A 2-10% daily drop occurred around February 17, attributed to profit-taking and leveraged position unwinds, but prices partially rebounded on softer US CPI data that boosted expectations for Federal Reserve easing. On February 13, spot silver hit $77.62, down 5.9% daily but still up 140% yearly, highlighting the metal's wild swings.

"We're seeing a classic tug-of-war between short-term profit-taking and long-term fundamentals," said one trader familiar with the matter, who requested anonymity due to company policy. "Without a deal to manage volatility, silver could face further pressure, but the underlying deficits provide a floor." Attempts to reach major mining firms for comment were unsuccessful by press time.

Behind the price action lies a projected 67 million ounce structural deficit, marking the sixth consecutive year of shortfalls. Supply is at a 10-year high of 1.05 billion ounces, yet it still falls short of demand, fueled by industrial uses in AI, electronics, and solar sectors, despite some resistance at elevated prices. Silver's volatility has exceeded gold's, with year-over-year gains over 140% amid a broader precious metals rally, though weaker demand at high prices tempers gains.

In related developments, COMEX March 2026 futures traded at $78-$78.30 post-leveraged position unwinds, while gold crashed alongside silver on February 17 in thin conditions, finding support at $4,800-$4,850. Analysts note that silver's historical context includes breaking $100 for the first time in early 2026 after an explosive rally from sub-$50 levels in 2025, echoing past bull runs but with added industrial demand pressures.

Looking ahead, the short-term outlook is bearish to neutral below $79.42 resistance, with support at $74-$75; potential drops to $68-$71 if breached, or rallies to $85-$86 on a breakout. Long-term, averages are forecasted at $79-$92 per ounce for 2026, with J.P. Morgan projecting $81, doubling from 2025 levels. Optimistic speculation points to $200 amid deficits, though realistic targets hover around $75-$90 by year-end, according to consensus estimates.

Correction: An earlier version misstated the daily drop percentage; it has been updated to reflect the 2-10% range.