Silver prices have moved lower this week after coming off earlier highs in January, reflecting a broader correction in precious metals as market participants reassess risk sentiment, profit-taking, and macroeconomic influences. Silver last traded around $77.02 per ounce, down roughly 1.22% from the previous session, though the metal remains significantly higher than levels seen a year ago, up more than 130% year-over-year.
The retreat in silver comes amid a pronounced correction that has taken prices well off their January peaks, when global benchmark contracts briefly exceeded $120 per ounce before reversing sharply. Over the past month, silver has fallen nearly 18–19% from those highs, underscoring the market’s volatility and the impact of profit-taking and shifting macro trends.
Domestic Price Movements Reflect Global Weakness
In India, one of the world’s most active bullion markets, silver has also corrected sharply. Multiple reports indicate that on February 16, 2026, silver futures on the Multi Commodity Exchange (MCX) plunged by ₹8,200, dipping below ₹2.5 lakh per kilogram amid intense profit-booking following a sharp rise in recent sessions.
Earlier this week, silver prices were trading near ₹2.74 lakh/kg, but heavy selling pressure and cautious sentiment have pushed prices lower on renewed risk-off behavior among investors. Experts attribute this weakness to profit realization after January’s spectacular run-up.
Retail price data from Hyderabad show silver at approximately ₹265 per gram (₹2,65,000 per kg), once again highlighting the metal’s sensitivity to global price swings and domestic demand patterns.
Key Drivers Behind the Pullback
Several factors are contributing to silver’s recent downturn:
- Profit-Taking After a Strong Rally
Silver’s rally in late 2025 and early 2026 drew many bullish traders and investment flows. As prices peaked in January, many traders locked in gains, leading to increased selling pressure that has persisted into mid-February.
- Strong US Dollar & Interest Rate Outlook
A stronger US dollar and expectations that the Federal Reserve may keep interest rates elevated have reduced the appeal of non-yielding assets like silver. Higher interest rates make currencies and yield-producing assets relatively more attractive, contributing to pressure on precious metals.
- Liquidity and Market Conditions
Market holidays and reduced trading volume in major markets have also contributed to lower liquidity, exacerbating price swings. With fewer active participants, price movements can be more pronounced, leading to sharper pullbacks or rallies.
Silver vs. Gold: Diverging Patterns?
While silver has weakened, gold’s trajectory has been somewhat different, with analysts noting that gold remains supported by ongoing geopolitical uncertainty and structural demand drivers. Some experts argue that gold’s rally is not indicative of a broader commodity Supercycle, but rather specific to precious metals dynamics. In contrast, silver’s greater industrial linkage makes it more sensitive to macroeconomic signals and risk sentiment.
However, silver’s retreat has not erased its extraordinary performance this year: despite recent declines, prices remain far above levels seen prior to the latest rally, reflecting the metal’s dual role as both an industrial commodity and a safe-haven asset.
Outlook: Rebound Potential or Prolonged Pressure?
Looking ahead, analysts and price forecasts suggest a nuanced outlook for silver:
- Other predictive frameworks see prices settling in a broad range between $65 and $90 per ounce, driven by supply dynamics and demand from sectors such as renewable energy and electric vehicles.
- Retail sentiment surveys indicate that a significant portion of investors still expect silver to trade above $100 per ounce during 2026, reflecting sustained bullish expectations despite near-term volatility.
Despite these projections, the path forward for silver is not without risks. Continued strength in the dollar, slower industrial growth, or further profit-taking could keep downward pressure on prices. Conversely, renewed risk appetite, inflation concerns, or a shift in monetary policy expectations could spark a rebound.
What Traders Should Watch
Market participants focused on silver in the coming sessions should monitor:
- Dollar Index movements: as a stronger dollar tends to pressure silver prices.
- US inflation data and Fed communications: which can shift rate expectations and risk sentiment.
- Industrial demand indicators: especially in sectors like solar energy and electronics.
- Global liquidity and trading volume: which can amplify price swings during low participation periods.
Silver’s volatility in mid-February underscores the importance of disciplined risk management and a longer-term view when trading precious metals, especially in the absence of clear directional catalysts.
