Silver (XAG/USD) fell nearly 5% as the US Dollar stayed firm and US Treasury yields held steady. It traded at $73.49 after reaching $76.87 earlier.
The chart shows a run of lower highs and a drop to a six-day low at $72.00. A clear break below $72.00 may open a move towards $70.00.
Technical Momentum And Key Levels
The Relative Strength Index is falling and remains in bearish territory. This points to a possible test of the 100-day simple moving average at $64.71.
If the decline extends, the next level watched is $60.00. On the upside, a move back above $75.00 could bring the 50-day simple moving average at $79.39 into view, with $80.00 beyond that.
Silver prices are influenced by interest rates and the US Dollar because it is priced in dollars. They can also react to geopolitical risk, recession concerns, investment demand, mining supply, recycling, and industrial use.
Industrial demand from electronics and solar can lift prices, while weaker demand can lower them. Silver often moves in the same direction as gold, and the gold/silver ratio is used to compare relative value.
Macro Drivers And Market Positioning
Looking back at the sharp sell-off in 2025, we saw silver prices plunge under the weight of a strong dollar. The situation today, February 18, 2026, has evolved significantly. The US Dollar Index (DXY) has softened to 101.5 after the January 2026 inflation data came in at an annualized 2.4%, fueling expectations of Fed rate cuts by mid-year.
Industrial demand, a key factor we watch, is providing a strong floor under prices. The latest industry reports for Q4 2025 showed global demand for silver in photovoltaics (solar panels) grew by 15% year-over-year, and this trend is accelerating into 2026. This robust physical offtake helps absorb any selling pressure from financial markets.
We’re also seeing silver regain ground against gold. The gold-to-silver ratio, which spiked to over 90:1 during the 2025 lows, has now compressed to 83:1. This indicates silver is beginning to outperform, suggesting it remains the better value between the two precious metals.
For derivative traders, this environment makes selling out-of-the-money puts below the $72 level an attractive strategy for collecting premium, as that support held firmly in late 2025. We also see opportunity in buying call option spreads that target a move toward the $80 mark. This provides a defined-risk way to position for a test of the highs seen before the 2025 correction.
The technical picture from last year, which pointed to downside risks toward $64.70, seems to have played out by establishing a firm base around $68 in November 2025. Now, the $75 level, which was resistance, is acting as solid support. The latest Commitment of Traders report shows that managed money has increased its net-long position in silver futures for the third consecutive week, confirming this shift in sentiment.
