NEW YORK, March 20, 2026, 15:00 EDT
Silver sank 4.8% to $69.39 an ounce by 2:14 p.m. ET on Friday, tracking toward a weekly loss as both the dollar and Treasury yields strengthened after Reuters said Washington was sending more troops to the Middle East. Gold dropped 1.8%, platinum declined 0.9%, and palladium slipped 1.6%. Independent metals trader Tai Wong described gold and silver as getting pulled down while markets navigated their “usual wall of worry,” cautioning that “a bumpy ride” could lie ahead. Reuters
This matters: the correction is intensifying right as investors abandon hopes for old-school rate cuts. Markets are currently pricing in about a 75% chance the Fed raises rates by September, and the probability of a hike in July is now better than even. Silver, similar to gold, pays no interest—so rising yields and rates typically hit it hard. Reuters
Currencies echoed the move. The dollar index added roughly 0.4% on Friday, trimming its losses for the week. Monex USA’s Juan Perez noted that central banks struck a “more confident” tone on inflation than markets had priced in, emphasizing the Fed’s “no interest in cutting rates.” Reuters
By Thursday, the market was under pressure. Spot silver lost 5.3%, landing at $71.39. Brent crude had blasted past $110 a barrel. TD Securities strategist Daniel Ghali flagged more downside in precious metals, suggesting there’s “a very substantial amount of room” for bullion to drop further without snapping the bigger bull trend. Reuters
Bonds didn’t get a break. The U.S. 10-year Treasury yield moved up to 4.372%, while the two-year printed 3.928%—traders leaning toward tighter policy again. Scott Welch, Certuity’s chief investment officer, pointed to oil making its way into inflation thinking, saying, “that’s driving yields up.” Reuters
Equities felt the hit. Toronto’s materials sector lost 2.9% Friday, while Endeavour Silver shares sank over 4%—the metal’s decline wasting no time in dragging producers down. Reuters
Silver packs a heavier industrial punch compared to gold, finding its way into electronics, EVs, and solar panels. The Silver Institute last month predicted the market is on track for its sixth consecutive structural deficit—demand topping supply—even though industrial use is projected to slip 2% and physical investment is expected to jump 20% by 2026. Reuters
Right now, traders aren’t paying much attention to that longer-term supply angle. Back in February, Reuters noted silver had soared to a record $121.60 on Jan. 29, only to tumble right after. At the time, analysts warned the drop could deepen, potentially sending prices down to somewhere in the $60-$70 range they considered more justified by fundamentals. Reuters
Bulls face a clear risk here—should oil continue fueling inflation and expectations for Fed hikes get even stickier, silver’s selloff might still have legs. Quicker relief in shipping snarls or a dip in yields could help stabilize prices, but as it stands, silver is behaving less like a traditional haven and more in sync with rate moves.
