Silver prices experienced a significant surge on Friday, February 27, 2026, climbing over 6% to reach $93.80 per troy ounce. This sharp increase follows a period of notable volatility for the white metal, with investors seeking safety amid escalating geopolitical tensions and concerns over global trade policies. The rally today also places silver within striking distance of the ₹2.7 lakh psychological threshold in Indian domestic markets, with March 2026 futures on the Multi Commodity Exchange (MCX) settling at ₹2,68,009 per kilogram, a rise of 3.2%.
Silver's Recent Rollercoaster Ride
The current ascent marks a strong rebound for silver, which witnessed a dramatic correction earlier in February. After hitting an all-time high of $121.64 per troy ounce in January 2026, silver plunged to lows near $70 in early February, with some reports indicating a 35% fall in a single day. This sharp decline followed the nomination of Kevin Warsh as the next Fed chair and a subsequent rebound in USD confidence, which temporarily slowed demand for precious metals. However, the market has since found its footing, with prices consolidating around ₹2.85 lakh per kilogram in major Indian cities like Delhi, Mumbai, and Kolkata just before today's rally. Thisrecent volatility highlights silver's inherent sensitivity to both macroeconomic shifts and investor sentiment.[tradingeconomics+6]
Geopolitical Risks and Industrial Demand Fuel Rally
Several factors are converging to propel silver prices higher today. Intensifying geopolitical tensions, particularly involving the United States and Iran, are a primary driver. Ongoing US-Iran nuclear talks and broader security concerns in the Middle East have prompted investors to rotate into precious metals as safe-haven assets. Additionally, renewed uncertainty surrounding US tariff policy, including the potential for a 15% global tariff, is contributing to the demand for silver.[news+3]
Beyond safe-haven appeal, silver's robust industrial demand continues to provide strong underlying support. The metal is crucial in sectors like solar panel manufacturing, which alone accounts for approximately 25% of the global silver supply. Electric vehicles also require between 1 to 3 ounces of silver per vehicle, depending on their advanced systems. The expanding electronics manufacturing sector, particularly in China, further boosts consumption, with these applications representing 60% of Chinese industrial silver demand. Thispersistent industrial need, coupled with a structural supply deficit, means demand consistently outstrips mine supply.[businesstoday+7]
What This Market Movement Reveals
Today's significant price movement is telling for several reasons. It underscores silver's dual role as both an industrial commodity and a safe-haven asset, reacting strongly to both economic growth indicators and global instability. The rapid rebound from early February lows demonstrates the market's underlying bullish sentiment and the quick response of investors to shifting risk perceptions.[adityabirlacapital+1]
Analysts offer varied outlooks for silver in 2026, reflecting the complex interplay of these factors. J.P. Morgan Global Research, for instance, projects silver prices to average $81 per ounce in 2026. Goldman Sachs expects silver to trade between $75 and $85 through most of the year. However, some more bullish forecasts, like that from GoldSilver's Lead Analyst Alan Hibbard, anticipate silver could even surpass $100 per ounce, potentially reaching $175 or more, driven by deepening supply deficits and accelerating industrial demand.[discoveryalert+3]
Sagar Dua, an analyst with FXStreet, notes the near-term bullish bias for silver, stating, "XAG/USD trades higher above $90 as of writing. The near-term bias tilts mildly bullish as price holds above the 20-day Exponential Moving Average, which is around $85 and underpins the recent rebound from the mid-$70s area". Thistechnical stability suggests that despite recent swings, the market is building a new foundation for higher prices.[goldsilver+1]
Outlook Amid Continued Volatility
The current market environment suggests that silver will likely remain highly volatile. While today's surge is a clear indication of strong buying interest, especially from safe-haven demand, the long-term trajectory will depend on the evolution of geopolitical events and global economic policies. Concerns over the sustainability of artificial intelligence (AI) stock valuations also played a role today, prompting some investors to move capital into traditional safe havens like silver.[capital+1]
Experts at Amplify ETFs suggest that the market is in a "price discovery" phase, where a new "floor" for silver could be forming in the $70 to $80 per ounce range. Theybelieve the overarching bullish case for silver remains intact due to the combination of strong industrial demand, constrained supply, and persistent investment interest. Investors will continue to watch for further developments in global trade relations and central bank monetary policies, which could provide additional cues for silver's next major move.[fxstreet+2]
