Silver Price Slips 2.8% Today; Can the Metal Climb to Fresh Record Highs?

Silver prices witnessed a sharp pullback on February 17, raising fresh questions about whether the metal can scale new record highs in 2026 despite strong gains last year.

Silver Falls to $73, Recovers Slightly​

In the early hours of February 17, silver prices dropped to as low as $73 per ounce. The metal later recovered some ground to trade at $75.50 per ounce at 01:44 am GMT, still down 2.88 percent from the previous close.
On the domestic front, silver futures on MCX closed Monday’s session at Rs 2,40,201 per kilogram, marking a 0.13 percent decline from the previous close. Earlier in the first week of February, prices had slipped toward the Rs 2.30 lakh level amid global selling pressure and heightened volatility.
Meanwhile, the Indian Bullion and Jewellers Association pegged the standard price of 1 kilogram of silver at Rs 2,40,947 during its 18:30 session on February 16. This represented a 0.61 percent gain from Rs 2,42,433 recorded in the previous 24 hours.

2025 Rally Followed by Corrective Phase​

Silver enjoyed a strong rally through 2025 and extended gains into January 2026, touching record highs before entering a corrective phase. The recent pullback reflects a cooling period after the sharp surge seen earlier.
Ross Maxwell, Global Strategy Operations Lead at VT Markets, said that while new record highs this year are certainly possible, they remain unlikely unless multiple favourable factors align simultaneously.

What Could Drive Silver Higher?​

According to Maxwell, a combination of falling real interest rates, a weaker US dollar, and a clear shift toward monetary easing by major central banks could create a supportive backdrop for silver.
He noted that silver typically lags gold during the early stages of precious metal rallies but tends to outperform in more speculative phases, a pattern that has already played out in the current cycle.
Industrial demand from sectors such as solar, electronics, and electrification continues to support prices. However, demand growth is described as steady rather than explosive, while existing inventories and recycling flows may limit sharp price spikes.

What Could Cap the Upside?​

Maxwell pointed to several factors that could restrain further gains:

• Higher for longer interest rates, which increase the opportunity cost of holding non-yielding assets like silver
• Strong equity markets that attract capital away from safe-haven assets
• Any slowdown in global manufacturing, which could dampen industrial demand

He added that while maintaining a core allocation to silver may make sense for long-term exposure, expecting another parabolic rally this year could result in overexposure.
Investors may consider accumulating on pullbacks, diversifying across bullion, low-cost funds, and quality mining equities, and retaining liquidity to take advantage of short-term volatility. Those holding large positions could look at partial profit-taking during rallies while maintaining a strategic core allocation, given silver’s history of sharp spikes followed by prolonged consolidation.

Silver Price in Indian Cities​

Below are the latest silver prices per 1 kilogram across major Indian cities as of 17-02-26:
Silver remains volatile in the near term, balancing between supportive macroeconomic drivers and headwinds from interest rate expectations and industrial demand trends.