LONDON, March 31, 2026, 19:06 (UTC+1)
Spot silver jumped 6.7% to $74.64 an ounce on Tuesday, bouncing alongside other precious metals as the dollar slipped and investors responded to fresh indications that tensions with Iran may not escalate. Gold advanced 3.2%, platinum tacked on 3.1%, and palladium surged 5.2%.
Silver’s slide this month—down 20.4% for March—underscores how fast gains disappear when oil prices, the dollar, and interest-rate bets move. The metal isn’t just stashed in vaults; it’s built into electronics, solar panels, bars, coins, and jewellery, filling factories too.
The turbulence isn’t just hitting traders. Germany moved Monday to slash the silver in two of its collector coins after sharp price swings in the metal. The Silver Institute, for its part, still expects the market to notch a sixth consecutive structural deficit this year. That points to demand outpacing supply again, despite a small uptick in mine output.
The dollar backed off on Tuesday, though it’s still tracking toward a monthly rise—keeping metals pegged in dollars pricey for non-U.S. buyers. Some relief came through after the Wall Street Journal reported President Donald Trump may be open to calling off the military push against Iran, even if the Strait of Hormuz isn’t fully reopened.
Peter Grant, vice president and senior metals strategist at Zaner Metals, called the latest gold rally “encouraging,” citing “some increased optimism about de-escalation in the Middle East.” Still, he said he’s looking for further gains before calling this a lasting shift. Reuters
Grant pointed to central-bank buying and countries looking to ease off the dollar as the backbone for the long-term precious metals story. On the flip side, BNP Paribas analysts have silver pegged between $65 and $75 through 2026, expecting the physical market to tip into surplus by 2027—supply outpacing demand.
After edging up just 1% to close at $70.27 on Monday, with spot prices hovering near $71, silver saw a sharper move higher this time. Still, Tuesday’s rally claws back just a fraction of what the metal lost during the March tumble.
Jim Wyckoff, senior analyst at Kitco Metals, pointed to “the war, crude oil prices, bond yields, and the U.S. dollar index” as the key drivers for precious metals in the near term. That’s just as true for silver. Like gold, silver offers no yield, so rising rates can sap demand—even if geopolitical tensions are sending some investors searching for safer ground. Reuters
Silver keeps getting yanked in two directions. Brent crude hovered around $118 a barrel on Tuesday. Colin Graham, who heads multi-asset strategies at Robeco, flagged a higher chance of recession if the Strait of Hormuz remains shut “for the next week or two” — conditions that threaten to keep inflation stubborn and rate-cut bets subdued, just the sort of setup that’s been pressuring metals all through March. Reuters
But with silver snapping back, it’s now flirting with the upper end of ranges projected by some banks for this year—clear sign that bulls aren’t entirely out of the picture. What happens next? It’s less about technical chatter, and more about moves in oil, the dollar, and any real progress on those recent Iran signals.
