Silver fell on Thursday, trading near $82.85, down 1.95% on the day. The metal pulled back after hitting a weekly high of $86.30, following a rebound from last week’s lows near $64.00.
US labor data slowed silver’s recent rise. Bureau of Labor Statistics figures showed January Nonfarm Payrolls increased by 130K versus 70K expected, while the Unemployment Rate dipped to 4.3%.
Fed Policy Expectations
The data lowered demand for near-term rate cuts. Federal Reserve officials have also said inflation is still above target, supporting the case for keeping rates restrictive in the near term.
Markets still price in close to 50 basis points of rate cuts by year-end. This has helped limit further declines in silver.
The US Dollar struggled to extend its rebound on Thursday, which supported precious metals. Geopolitical risk and uncertainty about the timing of any Fed shift have kept price swings elevated.
Silver prices can be influenced by interest rates, the US Dollar, and investor demand through products such as Exchange Traded Funds. Industrial demand (including electronics and solar), mining supply, recycling, and moves in gold prices can also affect silver.
Looking Back And Ahead
This time last year, in early 2025, a strong jobs report briefly pushed silver down from above $86. The drop happened because markets worried the Federal Reserve would delay interest rate cuts. It was a short-term dip within a broader bullish trend.
Now, on February 12, 2026, the labor market looks softer. The latest January 2026 report showed Nonfarm Payrolls rising by a more modest 95,000, while the unemployment rate ticked up to 4.5%. Unlike last year’s strong data, this cooler report is bringing back expectations of a Fed pivot sooner rather than later.
Even so, inflation remains sticky. The latest January 2026 Consumer Price Index showed inflation at 2.9% year over year. This is keeping the Fed cautious after a single 25-basis point cut in late 2025. With policy still uncertain, volatility in silver is likely to stay high in the coming weeks.
One major support for silver is strong industrial demand, especially from green energy. Global solar panel manufacturing accelerated through 2025 and now accounts for a record share of silver demand. This creates a stronger fundamental floor than we saw early last year.
For derivatives traders, this setup favors strategies that can benefit if prices rise, while still protecting against Fed-driven risk. Interest has increased in call options with strike prices above $95 for late-spring expirations. At the same time, protective put options can help hedge against unexpectedly hawkish policy comments.
The Gold/Silver ratio has also tightened, trading near 75:1, down from highs above 85:1 seen during parts of 2025. This suggests silver has been outperforming gold. If industrial demand stays strong, that trend may continue. For traders, long silver versus short gold pair trades may be appealing because they focus on silver’s industrial drivers.
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