New York, April 2, 2026, 14:04 EDT
Silver slid almost 4% Thursday, pressured by a firmer dollar and surging oil after President Donald Trump announced continued U.S. strikes on Iran, prompting traders to pull back from the metal. Spot silver was off 3.9% at $72.19 an ounce as of 11:22 a.m. EDT.
The decline cut into Wednesday’s bounce, leaving silver stuck in a tricky position as macro jitters surface. Sometimes it trades like a safe haven. But with its heavy use in electronics, EVs and solar panels, rate and growth fears can hammer it either way.
That reversal didn’t take long. Gold slid 2% to $4,660.95 an ounce on Thursday—not as steep as the drop in silver. Platinum managed a 0.5% uptick, and palladium advanced 2.1%. Just a day before, silver had notched a 1.2% gain to $76.03 as a weaker dollar and faint hopes for Middle East de-escalation had buoyed bullion.
“The market is very focused on Trump’s comments,” said David Meger, director of metals trading at High Ridge Futures. There’s little indication energy prices will settle down quickly, he noted. That’s hitting silver—since it doesn’t yield interest, rising oil and sticky inflation make precious metals less appealing with fewer rate cuts in sight. Reuters
The broader market followed suit. Brent crude jumped more than 7%, topping $110 a barrel. The dollar index added 0.39% after Trump pledged tougher U.S. military moves. Investors zeroed in on the Strait of Hormuz, a key chokepoint for about a fifth of the world’s oil and LNG traffic. “The only thing that really matters is whether the Strait of Hormuz will open soon,” said Prashant Newnaha, strategist at TD Securities. Reuters
Silver snapped back 6.7% on Tuesday to $74.64, but the rally wasn’t enough to overcome a 20.4% drop for March. The market, notoriously tough to read, isn’t expected to settle soon—BNP Paribas puts its range at $65 to $75 through 2026. And by 2027, the physical market is forecast to tip into surplus.
The longer-term supply story hasn’t gone away. Back in February, the Silver Institute projected a sixth consecutive annual deficit — demand outpacing supply — despite expectations for softer industrial fabrication and a rebound in retail investment. That dynamic sheds light on silver’s capacity to rebound sharply after heavy selling.
The short-term outlook? Choppy. Bob Haberkorn at RJO Futures floated the idea Wednesday that “gold prices could move back above $5,000 per ounce” if hopes for rate cuts return on easing tensions. Tony Sycamore from IG, meanwhile, described a possible ceasefire as a “double-edged sword” for gold—safe-haven flows might fade, but lower oil and gentler inflation could lend support. Silver’s stuck in the same crosscurrents, plus more pressure from the industrial side. Reuters
Oil, the dollar, and developments in the Iran war are front and center for traders at the moment, overshadowing silver’s supply story. That came through clearly in Thursday’s moves.
