• Spot silver prices tumbled more than 3% in intraday trading, hitting a low of $70.21 per ounce on COMEX.
  • The decline was driven by a stronger U.S. dollar and shifting expectations for Federal Reserve interest rate policy.
  • Analysts note increased volatility in precious metals as traders adjust positions ahead of key economic data releases.

A Sharp Drop in Silver Prices

Spot silver prices fell sharply on Thursday, dropping over 3% to $70.21 per ounce during active trading on COMEX, according to market data. The move came amid a broader selloff in precious metals, with gold also declining modestly as the U.S. dollar strengthened against major currencies. Traders cited rising Treasury yields and revised expectations for Federal Reserve policy as primary drivers behind the selloff.

"We're seeing a classic risk-off move in metals," said one commodities trader at a major investment bank, who requested anonymity because they weren't authorized to speak publicly. "The dollar's strength and concerns about higher-for-longer rates are putting pressure across the board."

Market Context and Trading Dynamics

The decline follows several sessions of relative stability in silver markets, with prices having traded in a narrow range around $72-73 per ounce earlier in the week. Thursday's drop pushed silver below key technical support levels, triggering additional selling from algorithmic traders and momentum-focused funds. Trading volume was notably higher than average, with COMEX reporting elevated activity throughout the session.

Industrial demand factors, typically a supportive element for silver given its use in electronics and solar panels, appeared to take a backseat to macroeconomic concerns. Copper prices also softened during the session, though not as dramatically as silver, suggesting the move was more about financial flows than changes in industrial outlook.

Policy Backdrop and Participant Activity

Market participants pointed to recent comments from Federal Reserve officials as contributing to the shift in sentiment. While no major policy announcements occurred on Thursday, traders noted that several Fed speakers this week have emphasized the need for patience before considering rate cuts, contrary to some market expectations for earlier easing.

ETF flows showed modest outflows from silver-backed funds in recent days, according to preliminary data, though not at levels that would fully explain Thursday's sharp decline. One metals analyst at a European bank suggested the move might reflect position adjustments ahead of Friday's employment data release. "There's definitely some pre-positioning happening," the analyst said. "If we get a strong jobs number, it could reinforce the higher-rate narrative and put further pressure on metals."

Short-Term Outlook and Trading Levels

Technical analysts identified $70 as a key psychological level, with the breach below $70.50 triggering additional selling. Support is now seen around $69.50, while resistance has formed near $71.80. The relative strength index dipped into oversold territory during the session, which some traders suggested might lead to a short-term bounce.

"Without a catalyst for dollar weakness or renewed inflation concerns, silver could remain under pressure," said a portfolio manager specializing in commodities. The manager noted that while industrial demand remains structurally supportive over the medium term, financial factors are dominating near-term price action.

Attempts to reach representatives of major silver mining companies for comment were unsuccessful by publication time. Trading desks reported active two-way flow throughout the session, with both long liquidation and new short positions contributing to the decline.

Correction: An earlier version of this article misstated the trading venue; silver futures trade on COMEX, not NYMEX.