Silver fell on Thursday, trading near $82.85 and down 1.95% on the day. It pulled back after a weekly high of $86.30, following a rebound from last week’s lows near $64.00.
US labour data slowed the recent rise in Silver. Bureau of Labor Statistics figures showed January Nonfarm Payrolls rose by 130K versus 70K expected, while the Unemployment Rate dipped to 4.3%.
Fed Policy Expectations
The data reduced demand for near-term rate cuts. Federal Reserve officials have also pointed to inflation remaining above target and supported keeping rates restrictive in the near term.
Markets still price close to 50 basis points of rate cuts by year-end. This has helped limit further falls in Silver.
The US Dollar struggled to extend its rebound on Thursday, which supported precious metals. Geopolitical uncertainty and uncertainty over the timing of any shift in Fed policy have kept price swings elevated.
Silver’s price can be affected by interest rates, the US Dollar, and demand through products such as Exchange Traded Funds. Industrial use in electronics and solar, mining supply, recycling, and links with Gold prices can also influence moves.
Looking Back And Ahead
We remember this time last year, in early 2025, when a strong jobs report briefly pushed silver prices down from over $86. That pullback happened because the market feared the Federal Reserve would delay cutting interest rates. The situation created a temporary dip in an otherwise bullish structure for the metal.
Fast forward to today, February 12, 2026, the labor market picture looks different. The most recent jobs report for January 2026 showed Nonfarm Payrolls increasing by a more modest 95,000, while the unemployment rate has edged up to 4.5%. This cooling labor market data, unlike last year’s strong numbers, is reviving expectations for a Fed policy pivot sooner rather than later.
Even so, we must consider that inflation remains persistent, with the latest January 2026 Consumer Price Index data showing a 2.9% year-over-year increase. This is keeping the Fed cautious after they enacted a single 25-basis point cut in late 2025. The resulting uncertainty suggests volatility will be a key feature for silver in the coming weeks.
A major factor supporting silver now is the continued surge in industrial demand, particularly from the green energy sector. Global solar panel manufacturing, which accelerated through 2025, now accounts for a record portion of silver offtake. This provides a strong fundamental floor for prices that was less pronounced early last year.
For derivative traders, this environment points toward strategies that can capitalize on potential upward moves while hedging against Fed-related uncertainty. We are seeing increased interest in buying call options with strike prices above $95 for late spring expiration, allowing traders to benefit from a potential rally. At the same time, holding some protective put options could be a prudent hedge against any unexpectedly hawkish statements from policymakers.
The Gold/Silver ratio has also compressed significantly, now trading near a 75:1 level, down from highs over 85:1 that we saw during parts of 2025. This indicates silver has been gaining relative strength against gold, a trend we expect to continue if industrial demand remains robust. This may make long silver versus short gold pair trades an attractive strategy for those looking to isolate silver’s unique industrial drivers.
