The blistering ascent of silver prices since the start of the year has hit a notable pause. A sharp two-day shift in sentiment, triggered by regulatory moves in China and a surprise shift in U.S. trade policy, has introduced significant pressure. This raises questions about the durability of the metal’s recent historic gains.
As of Friday, the spot price was oscillating near $90 per ounce, a notable retreat from the all-time high of $93.75 it recently set. While weekly gains remain impressive at over 12%, and the 30-day advance stands at approximately 34%, the market’s upward momentum has clearly decelerated.
A Dual Shock: Chinese Crackdown and U.S. Tariff Relief
The most immediate catalyst originated from Shanghai. Authorities at the Shanghai Futures Exchange implemented a series of measures designed to curb what they view as excessive speculation in silver futures contracts. These actions included disconnecting servers used for high-frequency trading, substantially lowering position limits for silver futures, and pledging to intensify general market surveillance.
These steps directly targeted speculative traders in China, who had been a primary force behind the global rally. The new restrictions forced a rapid unwinding of positions, triggering a wave of liquidations as this key source of demand abruptly retreated.
Simultaneously, the U.S. government temporarily suspended planned import tariffs on critical minerals, including silver. This move stripped the market of a significant risk premium that had been supporting prices. Previously priced-in surcharges for potential trade barriers evaporated. Buyers who had stockpiled silver in anticipation of trade conflicts moved to lock in profits, shifting focus back to fundamental supply conditions. Current visible supply appears comfortable, with COMEX warehouse stocks rising by roughly 100 million ounces year-over-year to 434 million ounces.
The confluence of these events—diminishing political risk premiums in the U.S. and stricter speculation controls in China—has collectively eased short-term speculative buying pressure.
Divergent Sentiment: Institutions Retreat, Retail Buys
Recent market positioning data reveals a clear split between professional money managers and retail investors.
Key Sentiment Indicators for Silver:
* Hedge funds reduced their net-long positions by 15% in the week ending January 13, reaching their lowest level in 22 months.
* Despite this, silver-backed ETFs attracted inflows of $921.8 million over the past 30 days.
* The iShares Silver Trust (SLV) recorded its second-largest daily inflow since 2021 on January 15.
* The gold-to-silver ratio fell below 50 for the first time in 14 years, signaling silver’s relative strength compared to gold even during the recent price correction.
* Gold itself proved more stable, holding around $4,595 per ounce, supported by tempered expectations for rapid Federal Reserve interest rate cuts.
Should investors sell immediately? Or is it worth buying Silber Preis?
This creates a notable tension: professional traders are scaling back bullish bets while retail and ETF investors continue to buy the rally. Friday’s closing price of $89.94 sits just 3.5% below the 52-week high of $93.19, yet it remains nearly 92% above the November low of $46.90—highlighting the sheer scale of the preceding advance.
Technical indicators reflect the heated market state. The current price trades nearly 29% above the 50-day moving average of $69.72. The 14-day Relative Strength Index (RSI) reading of 62, while not yet indicating extreme overbought conditions, confirms strong momentum. An annualized 30-day volatility above 66% underscores the elevated level of price swings.
Exploration Activity: Regency Silver Advances Drilling Plans
Amid the spot market volatility, corporate-level exploration activity continues. Canada-based Regency Silver Corp. has announced the commencement of its 2026 drilling program at the Dios Padre project in Sonora, Mexico.
Program Details:
* The focus will be on areas surrounding drill hole REG 25-26, where broad zones of sulfide-bearing breccias were previously identified.
* A minimum of four new drill holes are planned, each targeting depths between 500 and 650 meters.
* The primary objective is to achieve a more precise definition of the mineralization’s spatial extent.
While such exploration work does not directly impact short-term spot prices, it demonstrates that promising projects continue to advance in the current price environment—a factor with potential longer-term implications for future supply.
Technical Outlook: Support Levels in Focus
The break below $91 has delivered an initial technical warning signal, interrupting the powerful uptrend of recent weeks. Market analysts now identify the $85 region as a critical support zone.
A sustained drop below this level could deepen the current correction, particularly if forced position adjustments continue from Asia. However, if support holds, several factors could support a resumption of the broader uptrend:
* The price remains at a significant distance from its 52-week low.
* Silver continues to show relative strength versus gold.
* Substantial ETF inflows persist.
The path forward is likely to be characterized by continued high volatility. In the near term, the market will remain highly sensitive to further regulatory signals from China and upcoming decisions on U.S. trade policy.
Ad
Silber Preis Stock: Buy or Sell?! New Silber Preis Analysis from January 17 delivers the answer:
The latest Silber Preis figures speak for themselves: Urgent action needed for Silber Preis investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from January 17.
Silber Preis: Buy or sell? Read more here...