• Spot silver extends losses, down over 5% in intraday trading to around $64.43/oz.
  • A stronger dollar and weaker global growth outlook pressure precious metals, with industrial demand unable to offset investment weakness.
  • Analysts flag key support levels and warn of continued volatility amid macro data and central bank signals.

Silver Sells Off Sharply

Spot silver tumbled more than 5% in Wednesday trading, sliding to around $64.43 per ounce as a broad risk-off mood and a resurgent US dollar weighed on precious metals. The sharp decline marks an acceleration of recent losses, with silver now testing technical support levels after a period of heightened volatility.

“The macro backdrop is unforgiving right now,” said one metals trader in New York. “A stronger dollar combined with uncertainty around growth and rates is hitting silver especially hard, given its dual role as both an industrial metal and a monetary asset.” The US dollar index rose 0.6% on the day, adding pressure on dollar-priced commodities.

Industrial Demand Not Enough

While industrial demand for silver—particularly from solar panel manufacturing and electronics—remains healthy, traders said that alone is insufficient to absorb the selling pressure from investors fleeing non-yielding assets. The gold-to-silver ratio widened above 90, reflecting silver’s relative underperformance.

“Silver is caught in a tug-of-war between solid industrial fundamentals and macro headwinds,” said an analyst at a London-based bullion bank. “Right now, macro is winning.”

Market participants are now focused on upcoming US inflation data and Federal Reserve commentary for clues on the path of interest rates, which could further sway sentiment. Some expect near-term swings to persist, with silver vulnerable to further declines if the dollar continues to strengthen.

Support Levels in Focus

Technical analysts point to $62/oz as the next key support, with a break below that potentially opening the door to a test of the $60 level. On the upside, resistance is seen near $68. “The volatility is likely to continue until we get clearer signals on the macro front,” said the analyst.

Attempts to reach representatives from the Silver Institute for comment were not immediately successful. The decline comes amid broader weakness in commodities, with gold also down 1.2% and copper slipping 2.1%.

Correction: An earlier version of this article misstated the percentage decline. Silver was down over 5%, not 4%.