Silver rate today: Silver prices have been swinging between gains and losses this week so far as amid thin trade conditions, triggered by the closure of key Asian markets for the Lunar New Year, drained liquidity from global bullion trading.
Unlike gold, which enjoys diversified demand across geographies and investor classes, silver is far more exposed to disruptions in Asian participation, particularly from China.
The Lunar New Year holidays have shut down several major Asian financial and commodity hubs, sharply limiting participation in precious metals trading. Mainland China, Hong Kong, Singapore, Taiwan and South Korea stock markets are closed for the festivities. In China, the Shanghai Stock Exchange and the Shenzhen Stock Exchange are closed from February 16 to February 23, with trading scheduled to resume on February 24. Hong Kong operated a half-day session on February 16, before remaining shut from February 17 to February 19, and reopening on February 20. These closures remove a critical source of liquidity from global metals markets.
Chinese exchanges, particularly the Shanghai Gold Exchange (SGE), have become increasingly influential in precious metals price discovery, alongside Western benchmarks such as COMEX. When these markets go offline simultaneously, global trading volumes thin significantly, widening bid-ask spreads and amplifying price volatility.
Explaining the impact, Aamir Makda, Commodity & Currency Analyst at Choice Broking, said:
“The week-long closure of major hubs like the Shanghai Gold Exchange (SGE) for the Lunar New Year creates a significant ‘liquidity vacuum’ in the global bullion market. As the world’s largest physical buyers go offline, trading volumes thin out, often resulting in exaggerated price volatility and wider bid-ask spreads.”
Makda added that once pre-holiday buying from China fades, traders who entered early often book profits, pushing prices lower. He also cautioned that silver tends to suffer more than gold during this phase, as industrial production in China slows sharply during the festivities, weakening physical demand. From a trading perspective, he advised caution, noting that such periods are prone to false breakouts and abrupt reversals.
Why silver is hit harder than gold during Chinese holidays
Silver’s heightened vulnerability during the Lunar New Year holidays stems from its dual role as both a precious and an industrial metal. A much larger share of global silver demand is tied to industrial activity, and China is the world’s largest consumer of silver for industrial applications, including solar photovoltaic panels, electronics, electrical components and electric vehicles.
When Chinese factories slow or temporarily halt production for the holidays, demand for silver drops sharply, which can lead to a decline in white metal prices.
Gold, by contrast, is driven primarily by investment demand, central-bank buying and safe-haven flows, which remain active even when Asian markets are shut. This diversified demand base helps cushion gold prices during holiday periods, whereas silver lacks the same stabilizing support.
Market structure also plays a role. Silver’s market is smaller and less liquid than gold’s, making it more susceptible to sudden shifts in sentiment. When Chinese participation disappears, price discovery becomes concentrated in Western markets such as COMEX and London. In these conditions, speculative positioning, algorithmic trading and currency movements tend to dominate, often exaggerating price swings.
Historically, this pattern has repeated itself. Silver frequently weakens or trades erratically during the Lunar New Year window, before stabilizing once Chinese markets reopen and industrial demand resumes. Analysts generally view such holiday-driven softness as a liquidity distortion rather than a deterioration in fundamentals.
Silver rate today and near-term outlook
After declining in early trade, silver prices rebounded more than 1%, supported by persistent geopolitical tensions between the US and Iran, which lifted safe-haven demand. Investors are also closely assessing the future path of US monetary policy.
Spot silver rose 1.5% to $78.36 per ounce, after surging more than 5% on Wednesday. The rebound came even as markets digested the latest January Federal Reserve meeting minutes, which showed policymakers were broadly aligned on holding interest rates steady, but split on the next move. While “several” officials remained open to rate hikes if inflation stays elevated, others leaned toward further cuts should inflation continue to cool.
Lower interest rates typically benefit non-yielding assets such as silver, but uncertainty around the Fed’s timing has added to near-term volatility.
From a technical perspective, analysts expect choppy trading to persist. Renisha Chainani, Head of Research at Augmont, said silver is now moving toward key resistance levels at $85 and $90. Given the heightened volatility, she recommends a buy-on-dips and sell-on-rallies strategy within the current trading range, rather than aggressive directional bets.
As liquidity gradually returns once Asian markets reopen, traders will be watching closely to see whether silver regains stability — or whether fresh macro triggers once again take control of price action.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
