NEW YORK, March 26, 2026, 13:23 (EDT)
Silver sank more than 3% Thursday, giving back a chunk of the previous day’s surge. A stronger dollar, plus another lift in oil, stoked fresh inflation fears and sent traders heading for the exits on bullion. By 11:15 a.m. ET, spot silver had dropped 3.2% to $68.97 an ounce.
Silver’s behavior is shifting—it’s not acting like the usual safe harbor these days, but instead is moving more in line with assets that react to rate swings. Brent crude pushed up past $105 per barrel again, and the dollar firmed. “Markets are being driven by oil prices,” said Peter Cardillo at Spartan Capital Securities. It’s a tough backdrop for bullion, which offers no yield. Reuters
The shift showed up just a day before. Spot silver jumped 1.7% on Wednesday to $72.41, with oil sliding and traders positioning for lower inflation possibly opening the door to Fed rate cuts before year-end.
After Thursday’s drop, silver sits over 40% under the all-time high of $117.69 an ounce hit on Jan. 26, despite its sharp rally earlier this year. Volatility has outpaced gold, with silver’s fortunes tied to both investment trends and industrial usage.
Jim Wyckoff, senior analyst at Kitco Metals, pointed to higher rates and inflation as factors dragging bullion lower. A drawn-out conflict, he said, could push prices down further. But if a ceasefire materializes, rate-cut expectations might resurface.
Peter Grant, vice president and senior metals strategist at Zaner Metals, flagged on Wednesday that slipping oil prices contributed to a “technical recovery,” but said markets still wanted to see more cooling in inflation fears before giving real weight to another U.S. rate cut. That view didn’t last long—Thursday’s action quickly tore up that playbook. Reuters
Silver wasn’t the only casualty. Spot gold slid 1.1% to $4,455.51 an ounce; platinum dropped 3.2%, settling at $1,858.46, and palladium tumbled 4.5% to $1,359.62. Pressure hit the entire precious-metals group.
Traders kept their focus on rates after U.S. data offered few surprises. Initial jobless claims ticked up 5,000 to 210,000 last week. Continuing claims dropped to 1.819 million—marking the lowest level since May 2024. The numbers underscore a labor market that hasn’t softened, giving the Fed room to stay wary as energy-fueled inflation risks linger.
The rates debate isn’t over. Reuters’ economist poll still points to a Fed cut by September—at least one this year—even as traders have erased bets on easing stretching into 2026. Jonathan Millar over at Barclays calls it “entirely plausible” for the Fed to simply ride out the oil shock. If crude prices settle or ceasefire talks start to stick, silver could bounce again. But if the conflict drags out and inflation broadens, the metal looks vulnerable. Reuters
The Silver Institute, in a February update, projected the market was on track for its sixth annual deficit in 2026. Still, it expects industrial fabrication to dip 2% as solar makers cut silver use. Demand from data centers, AI tech, and autos is set to partially cushion that drop.
