New York, March 21, 2026, 14:25 EDT
Silver took a beating this week. Spot prices tumbled 4.8% Friday, closing at $69.39 an ounce. Gold slid too, down 1.8%. Over on Comex, the closest U.S. silver futures contract collapsed 14.28% for the week, settling at $69.36.
Silver, once the star of the market just weeks back, soared to a record $121.60 on Jan. 29 after rocketing 147% in 2025. Now, the sharp move lower points to a quick exodus—traders are bailing out of a crowded position.
Silver moves with more volatility than gold, a result of its dual role as a precious metal and a key component in electronics, solar panels, and electric vehicles. The Silver Institute, in a report last month, pointed to a sixth consecutive structural deficit for the silver market—supply still lagging demand—even as industrial usage is projected to slip 2% this year. Physical investment, on the other hand, is expected to jump 20%.
This week, it was the interest rate outlook that shifted. By Friday, U.S. futures reflected roughly a 25% probability of a Federal Reserve rate hike by December—just five days earlier, odds were basically zero, as traders quickly dropped hopes for cuts.
Bond markets made it clear. Yields climbed across the U.S. and Europe as traders confronted the possibility of stubbornly high energy prices and stickier inflation tied to the Iran war. “Expectations for a rate cut are fading fast,” said Robert Pavlik at Dakota Wealth Management. Reuters
The sell-off only picked up pace on Thursday. Spot silver dropped 5.3% to $71.39, with TD Securities strategist Daniel Ghali warning, “we continue to see risk to the downside,” as metals got knocked lower by a firmer dollar and traders cashing in. Reuters
Flows didn’t look much better. Money market funds hauled in $32.57 billion over the latest week. Gold and precious metals funds, on the other hand, bled $5.19 billion—their heaviest weekly net outflow going back to at least August 2018.
Stocks took a hit too. Materials on Toronto’s exchange lost 3.1% Friday, and Endeavor Silver dropped 4.5%, showing that silver stocks weren’t much of a safe haven as the metal slid.
Oil remains the wild card. “We could have a resolution in the next week,” said Chris Fasciano at Commonwealth Financial Network, which would likely relieve some pressure on yields and the dollar. But UBS analysts see markets bracing for a drawn-out conflict, heavier infrastructure hits, and crude staying elevated—a combination that could keep silver stuck where it is.
