Spot silver prices retreated on Tuesday, February 10, 2026, surrendering a portion of the previous session's sharp gains. The metal traded near $82.03 per ounce during the New York session, marking a decline of approximately 1.5%. The iShares Silver Trust ETF (SLV), a key vehicle for tracking the metal, mirrored the move lower, falling about 2.3%.
Market Focus Shifts to U.S. Economic Data
The pullback coincided with a stabilization in the U.S. dollar and a tentative return of risk appetite across equity markets. However, trader attention remains squarely fixed on two imminent U.S. economic releases: the January nonfarm payrolls report due on Wednesday and the Consumer Price Index (CPI) data scheduled for Friday. These indicators are considered critical for gauging the future path of Federal Reserve monetary policy, particularly regarding the timing and extent of potential interest rate adjustments.
Silver, which offers no yield, often faces headwinds when expectations for higher U.S. interest rates increase, as this boosts the appeal of interest-bearing assets and can strengthen the dollar, in which the metal is priced. Monday's rally, which saw silver surge over 5%, had left the market in an overbought condition, setting the stage for Tuesday's corrective decline.
Volatility and Technical Factors at Play
Market analysts noted that the recent price action reflects silver's current behavior more as a leveraged rates trade than a traditional safe-haven asset. Volatility remains elevated following a period of extreme swings in late January. During that episode, silver prices first soared to a record high before experiencing a sharp sell-off. The downturn was exacerbated by an increase in margin requirements for precious metals futures contracts at the CME Group, which triggered forced liquidations among leveraged market participants.
"The market is still digesting the violent turn from late January," analysts observed, describing the period as a "rollercoaster ride." The lingering effects of that liquidation event continue to influence trading dynamics, contributing to the current environment of heightened sensitivity.
In equity markets, silver mining shares presented a mixed picture. First Majestic Silver showed modest gains, while Pan American Silver edged slightly lower, following significant two-way volatility over the preceding fortnight.
Key Risks and Forward Outlook
The immediate risk for silver prices is skewed to the downside. A stronger-than-expected jobs report or a hotter inflation reading could propel U.S. Treasury yields and the dollar higher. In such a scenario, silver—a market where leverage is common—could experience rapid selling if positions are unwound, especially during periods of thinner liquidity.
Conversely, softer data that reinforces a narrative of slowing economic growth could pressure yields and support non-yielding precious metals. Some of Tuesday's selling pressure eased on this premise, following recent U.S. economic indicators that pointed to moderating activity.
The upcoming 48 hours are pivotal. The payrolls and CPI releases represent the most significant potential catalysts to alter market pricing for Fed policy and, by extension, dictate the next directional move for silver. Traders are positioned cautiously, awaiting these signals to determine whether the metal's recent volatility will persist or begin to subside.
