Silver price today falls to around $85 as a late-January surge unwinds

Silver prices swung sharply again Sunday, with spot quotes dropping back into the mid-$80s after a blistering late-January run that briefly pushed the metal above $120 an ounce. The abrupt reversal has put volatility back at center stage for traders and everyday buyers who had been drawn in by a near-vertical rally.

As of 9:40 a.m. ET on Feb. 1, 2026, spot silver was around $85.15 per troy ounce, down roughly 26% over the prior 24 hours in a move that followed Friday’s steep selloff and a rapid shift in positioning.

What’s behind the sudden drop

The pullback has followed a mix of profit-taking, a stronger dollar, and a broad “risk reset” after the market became heavily crowded on the long side. Silver’s market is smaller and often more reactive than gold’s, which can amplify price moves when funds rush for the exits.

A key catalyst late last week was the announcement of Kevin Warsh as the nominee to become the next Federal Reserve chair when Jerome Powell’s term ends in May 2026. The news helped trigger a fast repricing across rates and currency expectations, with knock-on effects for precious metals.

At the same time, the sheer speed of the late-January climb left the market vulnerable to sharp air pockets. When a lot of investors are positioned the same way, small shifts can turn into forced selling as volatility rises.

Volatility feeds on margin and liquidity pressures

After the historic swings, the main U.S. futures clearing venue increased minimum performance bond requirements for certain silver contracts. For standard COMEX 5,000-ounce silver futures, the posted requirements moved from 11% to 15%, while higher-risk categories moved from 12.1% to 16.5% across multiple maturities.

Higher margin requirements can matter quickly because they raise the cash traders must post to hold positions. If prices are already falling, that can accelerate deleveraging as participants cut exposure to meet funding needs. The result is often a feedback loop: more selling leads to more volatility, which can lead to tighter risk controls and still more selling.

Liquidity also plays a role. When the market is moving fast, even normally “safe” assets can become difficult to exit at expected prices. Silver, which is more thinly traded than gold and has a larger industrial component, can be especially prone to outsized intraday moves.

Spot vs. futures: why prices look chaotic

The late-week price action has produced confusing screens across spot and futures markets, particularly when overnight trading and different quote conventions are involved. Spot silver reflects the immediate market for the metal, while futures prices reflect delivery months and can incorporate financing costs, inventory expectations, and positioning dynamics.

During sudden dislocations, it’s common to see wide bid-ask spreads and rapid changes in the quoted “last” price. That can make prices look inconsistent across platforms, especially outside core trading hours. The important point for most observers is the direction and scale of the move: silver has snapped lower from record territory and is now trading far below last week’s peak.

What to watch next

The next few sessions are likely to be driven by three measurable inputs:

1) Dollar and rate expectations. A firmer dollar and higher real yields tend to be a headwind for precious metals. Any fresh guidance about the path of interest rates could reshape the rebound attempt.

2) Follow-through from margin changes. If volatility stays elevated, additional risk tightening can keep pressure on leveraged positions. If volatility cools, forced selling may fade, allowing price discovery to normalize.

3) Physical demand vs. financial flows. Dealers and end-users often step in when prices gap lower, but financial flows can dominate in the short run. If buying interest stabilizes and outflows slow, silver can attempt to rebuild a base.

For now, the chart is defined by extremes: a late-January peak around $121–$122, followed by a swift retreat toward the mid-$80s. Whether this becomes a brief washout or a longer consolidation will depend less on narratives and more on volatility, positioning, and the next set of macro signals.

Sources consulted: Kitco Metals; CME Group; Reuters; Investopedia