Silver has burst higher after spending most of February moving sideways in a tight range. That period of calm has now given way to a sharp breakout, signaling that buyers are regaining control.
The move appears to be driven by a mix of factors. Renewed trade tensions following last week’s Supreme Court ruling on tariffs have added uncertainty to global markets. At the same time, positioning ahead of the reopening of mainland Chinese markets may have helped fuel the surge. Whatever the trigger, the result has been a decisive shift in tone.
With silver pushing higher, the area around $92 per ounce now stands out as an important hurdle. If prices can move convincingly above that level, it would reinforce the idea that the recent rally has staying power and could encourage more investors to step in.
A sustained move higher could open the door to further gains toward levels seen earlier this year and potentially even a run back toward January’s record high near $121.66. On the downside, pullbacks toward the mid-to-high $80s could attract buyers if confidence in the breakout remains intact. However, a deeper retreat would suggest the rally may need more time to consolidate. Recent price action suggests that selling pressure has faded. Market momentum, which had been weakening earlier in the year, is now turning positive. In simple terms, buyers are becoming more confident while sellers are stepping back. That shift doesn’t guarantee a straight line higher, but it does suggest that the path of least resistance has tilted upward for now.
Silver’s rally is unfolding amid renewed global trade friction. The European Union has warned that new U.S. tariffs may violate existing trade agreements, while Washington is considering additional investigations that could lead to further levies. A new 10% global tariff has already taken effect, and discussions are underway about increasing that rate.
At the same time, President Trump is expected to defend his trade and economic policies in his State-of-the-Union address, keeping markets focused on tariffs and global commerce. Periods of political and economic uncertainty often benefit precious metals, as investors look for assets perceived as stores of value.
One factor that could eventually provide additional support is interest rates. For now, the Federal Reserve appears in no rush to cut rates, with markets expecting policy to remain unchanged in the near term. However, several rate cuts are still anticipated later this year. Lower rates typically weaken the U.S. dollar and make precious metals more attractive, as they do not pay interest. The U.S. dollar has recently strengthened, which can act as a headwind for metals in the short term. But if rate cuts materialize later in the year, that dynamic could shift.
Physical demand for silver has also picked up sharply. The Perth Mint reported that January sales of silver bars and coins jumped 188% from the previous month. In contrast, gold sales declined. This suggests that retail investors, sensitive to price and seeking relative value, have been gravitating toward silver, which has outperformed gold.
On the corporate side, mining company Hecla is leaning more heavily into silver production, reducing its exposure to gold and increasing investment in its core silver assets. That strategic shift highlights growing confidence in silver’s longer-term prospects.
Gold, meanwhile, has been consolidating after reaching record highs late last year. Silver often follows gold’s lead but with larger swings in both directions. If gold resumes its upward trend, silver could potentially amplify those gains. For now, silver’s breakout marks a clear change in momentum. Whether driven by trade uncertainty, improving sentiment, or renewed investor interest, the metal has shaken off its February lull.
The next few sessions will be important. If silver can hold its gains and push through nearby resistance, the rally could broaden. If not, some consolidation may be needed before the next move. Either way, silver is once again commanding attention