Silver slide tests key $70 line

Silver tumbled on Thursday, extending a volatile run in precious metals as higher oil prices, firmer Treasury yields and a stronger dollar pulled investors out of bullion. Spot silver was reported down about 4.6% on the day, while market data showed the metal trading near $72.31 an ounce and futures dipping to an intraday low around $70.35, leaving the market pressing against the $70 threshold rather than clearly breaking far below it.

That left social media claims of a full-scale crash only partly supported by market action. The sell-off was sharp and broad enough to unsettle traders, but the more defensible reading from available pricing data is that silver fell hard towards $70, not that a sustained collapse well below that level had been firmly established across benchmark quotes by the time the market updates were published. On Wednesday, silver had settled near $76.08 an ounce after a gain of 1.6%, underlining how quickly sentiment turned within a single session.

The immediate trigger was a renewed rise in geopolitical tension after President Donald Trump signalled continued military action against Iran, a development that sent Brent crude higher by more than 6% and revived inflation concerns. That combination pushed up the dollar and bond yields, sapping demand for non-yielding assets such as gold and silver. Bullion often benefits from geopolitical stress, but when conflict also drives energy prices higher and dims hopes of lower interest rates, the market can turn against precious metals instead of supporting them.

Silver’s vulnerability has been greater than gold’s because it straddles two roles: a haven asset for investors and an industrial metal tied to manufacturing, electronics and solar demand. When macro conditions deteriorate quickly, leveraged positions in silver can unwind faster than in gold. That pattern has defined much of 2026. Reuters reported in late January that silver had surged above $100 an ounce after a massive rally in 2025, only to suffer one of its steepest reversals in decades days later. By the end of March, pricing had already retreated to around $71, prompting Germany to cut the silver content of some commemorative coins in response to extreme price swings.

The scale of the market’s reversal helps explain why traders reacted so strongly to Thursday’s move. After reaching record highs above $121 an ounce in January, silver has been repeatedly hit by position liquidations, tighter margin conditions and abrupt shifts in interest-rate expectations. Reuters reported in February that spot silver at one stage slid more than 14% in a single session to near $72.21 before recovering somewhat, highlighting a market prone to exaggerated moves once momentum turns negative.

Domestic pricing in India reflected the international retreat. Reports from commodity-market coverage showed silver on the Multi Commodity Exchange dropping by about ₹14,000 per kilogram on Thursday, while gold also fell sharply. That mirrored the international pattern rather than signalling a localised collapse. The pressure came from the same global forces driving bullion lower: dearer energy, higher yields and reduced conviction that central banks would be in position to ease policy quickly.

For investors, the $70 area now matters as much psychologically as technically. It was the level silver first broke through on its way to record highs in December, and analysts have treated the $69-$70 band as an important support zone during the metal’s descent from January peaks. Thursday’s price action suggested that support was being tested again. Whether it breaks decisively may depend less on jewellery or industrial demand in the immediate term than on the path of oil, the dollar and expectations for US monetary policy.