Silver (XAG/USD) dropped nearly 5% as the US Dollar stayed strong and US Treasury yields were steady. It traded near $73.49 after earlier touching $76.87.
The chart shows a series of lower highs and a slide to a six-day low at $72.00. A clear break below $72.00 could open the door to $70.00.
Technical Momentum And Key Levels
The Relative Strength Index is trending lower and remains bearish. This suggests a possible test of the 100-day simple moving average at $64.71.
If selling continues, traders will likely watch $60.00 next. On the upside, a move back above $75.00 could bring the 50-day simple moving average at $79.39 into focus, with $80.00 as the next level after that.
Silver is priced in US dollars, so it often reacts to interest rates and the Dollar. Prices can also move on geopolitical risk, recession fears, investor demand, mine supply, recycling flows, and industrial use.
Industrial demand from electronics and solar can push prices higher, while weaker demand can drag them lower. Silver often moves with gold, and traders use the gold/silver ratio to compare their relative value.
Macro Drivers And Market Positioning
During the sharp sell-off in 2025, silver fell hard as the US dollar surged. The picture today (February 18, 2026) looks different. The US Dollar Index (DXY) has eased to 101.5 after January 2026 inflation came in at an annualized 2.4%. This has increased expectations for Fed rate cuts by mid-year.
Industrial demand remains a major support. Industry reports for Q4 2025 show global demand for silver in photovoltaics (solar panels) rose 15% year over year, and the trend is strengthening into 2026. Strong physical buying helps offset selling pressure from financial markets.
Silver is also gaining versus gold. The gold-to-silver ratio, which jumped above 90:1 at the 2025 lows, has tightened to 83:1. This suggests silver is starting to outperform, and may still offer better value than gold.
For derivatives traders, this setup can make selling out-of-the-money puts below $72 appealing for premium collection, since that area held as support in late 2025. Another approach is buying call spreads that target a move toward $80, which offers defined risk while positioning for a retest of the pre-2025-correction highs.
Last year’s downside risk toward $64.70 appears to have eased after silver built a base near $68 in November 2025. Now, $75—which used to be resistance—has become support. The latest Commitment of Traders report also shows managed money increased its net-long silver futures position for a third straight week, reinforcing the improvement in sentiment.
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