• Spot silver prices experienced a minor intraday decline of approximately 0.43% to around $93.41-$94.99 per ounce on March 2, 2026, amid ongoing volatility rather than a sustained drop over 3% as stated in the headline.
  • This follows sharp recent gains driven by geopolitical tensions, with silver surging nearly 195-200% year-over-year to a historic peak of $121.64 per ounce in January before pulling back.
  • Escalating Middle East conflicts, including U.S.-Israel-Iran military strikes and risks to the Strait of Hormuz, have boosted silver as a safe-haven asset alongside strong industrial demand.

Silver's dramatic 2026 rally hit a snag on March 2, with prices hovering near $93.41 to $94.99 per ounce, reflecting a slight intraday dip of about 0.43% rather than the over 3% drop suggested in some reports. According to people familiar with market data, this volatility comes after silver rebounded strongly from February lows around $77-$87 per ounce, with some sources noting an 8% single-day jump to $94.50 earlier in the week. Efforts to stabilize the metal have been complicated by safe-haven buying amid geopolitical unrest and a reported 67-million-ounce global supply shortfall.

Geopolitical risks are dominating the narrative, with U.S.-Israel strikes on Iran and potential Iranian Supreme Leader succession issues prompting investor caution. Without a de-escalation, prices could face further pressure from U.S. tariff hikes to 15%+ and Federal Reserve rate cut expectations, though a weaker U.S. dollar and COMEX futures liquidity shortages continue to support the uptrend. In India, domestic prices fell to ₹2.94 lakh/kg, down from February peaks, due to regional demand shifts, with southern markets like Hyderabad seeing ₹25,000/kg single-day hikes that strained retail buyers.

Industry sources point to silver's resilience as a hedge, with recommendations for ETFs and MCX derivatives amid the volatility. "It's a volatile market, but the fundamentals remain strong due to supply deficits and industrial demand from AI data centers and solar energy," said one analyst, who requested anonymity because they weren't authorized to speak publicly. Attempts to reach major traders for comment were unsuccessful, but market watchers note that silver's performance echoes past bull runs, surging from $31.85/oz a year prior through its January peak.

Looking ahead, short-term support is seen at $91.30-$92.50, with resistance at $95-$97.70; breaking above $95 could push prices toward $100, while easing tensions might trigger a drop to $85-$89.50. J.P. Morgan (JPM) forecasts an average of $81/oz for 2026, double 2025 levels, sustained by ongoing supply crunches. Meanwhile, gold holds near $5,200, and platinum/palladium also dipped amid shared risks, highlighting the broader commodity impact of U.S.-Iran nuclear talks in Geneva.

Correction: An earlier version of this article misstated the intraday decline; it was approximately 0.43%, not over 3%, based on updated market data.