Silver Market Analysis - February 11, 2026

Current Market Overview

Silver prices have surged by over 3% today, surpassing $83 per ounce. This rally indicates a potential return of bullish momentum in the precious metals market. The long-term outlook for silver remains positive, particularly as the U.S. dollar faces challenges ahead.

Key Influencing Factors

Several factors are contributing to the current bullish sentiment in the silver market:

• Tight Silver Inventories: There are reported tight inventories of silver in London.
• Geopolitical Tensions: Recent comments from Donald Trump regarding U.S. interest rates and dollar manipulation have added to market volatility.
• Speculation on U.S. Rate Cuts: Renewed speculation about aggressive cuts to U.S. interest rates is influencing investor sentiment.

Demand and Supply Dynamics

Despite expectations of a slowdown in industrial and jewelry-related consumption, demand for physical silver is projected to rise:

• The Silver Institute forecasts a 20% increase in investment in physical silver, reaching approximately 227 million ounces, following three years of decline.
• Industrial demand is expected to decrease by 2% to around 650 million ounces, primarily due to shifts in the solar segment towards cheaper substitutes.
• Jewelry demand is projected to decline nearly 10% year-over-year, reaching its lowest level in six years, largely driven by reduced consumption in India.

Looking ahead to 2026, total silver demand is expected to exceed supply, with supply projected to hit a record 1.05 billion ounces, resulting in a market deficit of around 67 million ounces.

Market Volatility and Investment Trends

The Heraeus group has noted that volatility in the metals market is likely to persist, driven by speculation in both Western and Chinese markets. Additionally, exchange-traded funds (ETFs) have absorbed a significant portion of selling pressure, indicating a strong appetite among retail investors for silver.

Investment demand for gold is also on the rise, with gold prices increasing over 500% in the past decade, while the U.S. dollar index remains near 11-year lows.

Technical Analysis

Silver is currently testing the 50-session exponential moving average, which serves as a critical boundary between bearish and bullish momentum. A sustained break above $92 per ounce could pave the way for prices to reach $100 per ounce, consistent with an inverted head-and-shoulders pattern. Conversely, a drop below $80 per ounce would suggest continued seller control, potentially capping upside attempts.