Silver fell on Thursday, with XAG/USD at $87.50 per troy ounce. That was 1.00% lower than Wednesday’s $88.38.
So far this year, silver is up 23.09%. In other units, it traded at $2.81 per gram.
Gold Silver Ratio Update
The Gold/Silver ratio was 59.20 on Thursday, up from 58.29 on Wednesday. This ratio shows how many ounces of silver are equal in value to one ounce of gold.
Silver is a precious metal, but it is also widely used in industry. Investors can buy physical silver or trade it through products like exchange-traded funds (ETFs) that track its price.
Silver prices can move because of interest rates, the US dollar, and market demand. Since silver is priced in dollars, changes in the dollar often affect its price. Supply factors also matter, including mining output and recycling.
Industrial demand can push prices up or down. Key uses include electronics and solar energy. Economic conditions in the US, China, and India can also change demand, including jewellery buying in India.
Market Drivers And Outlook
Silver often moves in the same direction as gold. Traders also watch the Gold/Silver ratio to compare how expensive or cheap the two metals are versus each other.
We saw silver pull back from the $88 level in late 2025 after a strong 23% rise for the year. That sideways period may be setting up the market’s next move. As of today, February 26, 2026, we are watching key economic data for direction.
Recent comments from the Federal Reserve suggest it may shift away from the 2025 rate hikes. Markets are now pricing in more than a 60% chance of a rate cut by the third quarter of 2026. Because silver does not pay interest, lower rates can make it more attractive to hold. This could bring more investment money back into precious metals.
Industrial demand remains a key support in our view, especially after new green energy initiatives passed in the United States. Reports from late 2025 said global photovoltaic demand used a record 235 million ounces of silver, and that total is expected to rise another 15% this year. A pickup in manufacturing also supports a bullish view, especially in China, where the latest PMI showed slight growth.
In late 2025, the Gold/Silver ratio was near 59, but it later widened to almost 66. That means silver became cheaper compared with gold, moving further from the 20th-century average of about 50. To us, this suggests silver may be undervalued and could outperform gold if precious metals rally.
With these factors in mind, we see some traders looking for upside through derivatives. One approach is buying long-dated call options, which can capture gains if prices rise while keeping risk limited to the premium paid. With implied volatility still below its 2025 highs, strategies like bull call spreads may offer a lower-cost way to express a moderately bullish view over the next few months.
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