BENGALURU, March 19, 2026, 14:31 IST
Silver lost ground Thursday, with spot prices shedding 4.3% to $72.14 per ounce. The most-active U.S. silver futures dropped even further, sinking 6.34% to $72.675. The prospect of a hawkish Fed — traders’ speak for interest rates holding steady at higher levels — and a stronger dollar took precedence, dampening the usual safe-haven flows sparked by turmoil in the Middle East. “Bullion is struggling in a high dollar and high oil environment,” said Tim Waterer of KCM Trade. Gold, platinum, and palladium joined the slide. Reuters
Silver’s wild ride this year has put it at the center of commodities trading. Back in February, a Reuters poll flagged that analysts were bracing for steep corrections, even after silver shot up 147% in 2025 and hit an all-time high of $121.64 on Jan. 29—a spike that swiftly collapsed into sharp swings.
Last month, the Silver Institute pointed out silver’s split between uses—jewellery, electronics, EVs, solar panels, plus investment. That combination can turn tricky: the metal often takes a hit when investors pull back on rate-cut wagers and fret over weaker factory orders.
That’s the challenge traders face at the moment. The Fed left its policy rate unchanged at 3.50%-3.75% on Wednesday, acknowledging the uncertainty from the Middle East and, Reuters reports, sticking with guidance for only one quarter-point cut this year. Powell put it plainly: “nobody knows” the potential size of the shock. Federal Reserve
The dollar wasted no time moving. After the Fed’s decision, the dollar index climbed 0.51% to 100.0. Joseph Trevisani, senior analyst at FX Street, summed up the move as a “hawkish hold.” For buyers dealing in euros, yen, or other currencies, a firmer U.S. dollar pushes up silver’s price tag, which tends to dent demand around the edges. Reuters
Oil pressures mounted as Brent crude climbed $6.08, or 5.7%, to settle at $113.46 per barrel, tapping $115.10 at session highs after Iran targeted Gulf energy sites. The move stoked concerns that persistent fuel price gains could lock in inflation and limit chances for rate cuts.
Still, silver isn’t a one-way bet. The Silver Institute projects that 2026 will mark six consecutive years of structural deficits — demand outpacing supply — which could cushion some downside. Yet, solar manufacturers are already moving faster toward copper, and Derek Schnee at JK Renewables called silver “the greatest contributor” to higher costs in solar production. The Silver Institute
The European Central Bank and Bank of England are both on deck later Thursday, adding to an already packed day for markets. Reuters said traders remain positioned for hawkish central bank moves as decisions approach. Silver, meanwhile, isn’t just reacting to haven flows; instead, it’s tracking signals from central banks, oil prices, and the dollar.
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