Silver suffers another turbulent week as volatility surges and prices struggle to stabilise

Vijay Valecha, February 7, 2026, Khaleej Times

US Markets

Silver extended its dramatic downturn this week, closing Friday at $77.20 per ounce — a slight rebound from the extreme lows seen in the prior sessions but still far below the record highs touched in late January.

The metal’s sharp swings, driven by futures-market flows, a firmer US dollar and waning risk appetite, have intensified concern among investors who have watched silver shed more than 40 per cent from its recent peak.

From a technical perspective, the picture remains fragile. Vijay Valecha, Chief Investment Officer at Century Financial, highlighted that silver continues to trade below both the 9‑day and 21‑day simple moving averages, with momentum indicators deep in negative territory. “Silver is still trading below the 9 and 21 SMA on the daily chart and has an RSI of 28, indicating that it is in the oversold territory,” he said. On the one‑hour chart, he sees resistance at $81 (100‑SMA) and $96 (200‑SMA), while immediate support sits at $64 and then $57.

International spot data reinforces the sense of instability. Earlier in Friday’s global session, silver had tumbled as low as $64.1 per ounce, down nearly 10 per cent on the day, before rebounding sharply toward $70 — a reflection of the extreme whipsaw movements now dominating the market. Analysts attribute the decline to a combination of elevated valuations, leveraged unwinding, and broader concerns around global economic sentiment. A strengthening US dollar — headed toward its strongest weekly performance since November — has further eroded investor appetite for dollar‑denominated commodities, accelerating the sell‑off.

Outlook for next week

Market watchers expect the coming week to remain volatile as traders digest the severity of recent declines. Julius Baer’s Menke cautioned that “the dust of the sell‑off will need some time to settle,” adding that an immediate return to January’s euphoric rally “looks increasingly unlikely” given current positioning and sentiment trends. Analysts at ABP Live echoed this view, saying that although fundamentals tied to industrial demand remain intact, the unwinding of speculative positions could continue to exert downward pressure in the near term.

Technically, Valecha's oversold readings suggest the possibility of a short‑term bounce, but only if prices reclaim resistance levels above $81. Until then, traders may continue to test support near recent lows.

Overall, silver enters next week on shaky footing — caught between long‑term structural demand and short‑term market stress, with volatility expected to remain the defining theme.

Source

Khaleej Times