Silver is staging a significant recovery as February 2026 comes to a close. After a period of extreme volatility that saw prices plunge to a monthly low of **₹2,55,000** per kg on February 18, the metal has rebounded sharply. As of February 23, 2026, silver is trading near **₹2,75,000** to **₹3,00,000** per kg in major physical markets. The primary catalyst for this resurgence is the escalation of geopolitical tensions between the United States and Iran. A **10-day deadline** set by the U.S. for a deal with Iran, combined with new military deployments in the Middle East, has reintroduced a substantial risk premium. Investors are rotating back into silver as a defensive safe-haven asset to hedge against potential conflict. Trade policy shifts are further fueling the rally. Recent U.S. Supreme Court rulings striking down broad tariffs were followed by the administration’s executive orders imposing a new **15% global tariff**. This move has weakened the U.S. Dollar, which fell toward the **97.8** level, making dollar-denominated silver more attractive to international buyers. Industrial fundamentals remain a critical support pillar. Silver is currently facing its sixth consecutive year of a structural supply deficit, with the 2026 deficit projected to hit **135 million ounces**. Demand is being driven by the green energy transition, particularly solar photovoltaics and electric vehicle infrastructure, which are less sensitive to short-term price swings. Market liquidity is also shifting. The conclusion of the Lunar New Year holiday in China is expected to bring speculative capital back to the Shanghai Gold Exchange. Analysts note that silver ETFs recently saw surges of up to **17%** in a single session, signaling a move from "paper" liquidation back toward physical accumulation. Technical indicators suggest silver is establishing a firm floor. While the metal remains nearly **33%** below its January all-time high of **₹4,10,000** per kg, the successful defense of the **₹2,50,000** support zone has turned sentiment cautiously bullish. Major financial institutions now project an average price target of **$81** per ounce for the remainder of the year. The current market landscape is defined by a "risk-off" mood. With U.S. GDP growth slowing to **1.4%** in the recent quarter, silver is increasingly viewed not just as an industrial commodity, but as a vital monetary hedge against both inflation and geopolitical instability.