Silver's Sharp Retreat: WisdomTree ETC Trades Far Below Peak

Silver prices have fallen sharply, trading over 40% below their 2026 peak. Analysts cite a strong US dollar, high interest rates, and softening demand as key drivers of the decline.

The price of silver has surrendered a substantial portion of its gains over the last two months. Trading at approximately $72.20 per troy ounce, the precious metal now stands more than 40% below its record high of over $120 reached in January 2026. This price action is directly mirrored by the WisdomTree Physical Silver EUR exchange-traded commodity (ETC).

A Challenging Macroeconomic Climate

Analysts point to a combination of macroeconomic forces driving the decline. A persistently strong US dollar and expectations that interest rates will remain elevated are applying significant pressure. As long as the Federal Reserve maintains its restrictive monetary policy to combat stubborn inflation, non-yielding assets like silver face a structural headwind. The current yield on the 10-year US Treasury note, holding above the critical 4.3% threshold, historically weighs on silver's appeal.

Geopolitical tensions surrounding the Strait of Hormuz have introduced additional volatility, pushing energy costs higher and unsettling broader commodity markets. Furthermore, market researchers highlight a substantial unwinding of leveraged speculative positions and a softening industrial demand as contributing factors to the weakness. Industry-wide, silver-backed ETFs have seen losses of up to 15% over the past eight weeks.

Portfolio Considerations and Market Mechanics

Investors are reminded that silver is characterized by a volatility profile that can be two to three times greater than that of gold—a crucial factor for determining its weighting within an investment portfolio.

From a technical perspective, the $70 zone is viewed as a key area of support. A breach below the 200-day exponential moving average, situated near $62.82, could signal the potential for further declines, according to market observers.

A significant change in pricing mechanics also took effect on April 1, 2026. New valuation rules have been implemented across several markets, replacing the international LBMA benchmark with domestic spot prices. While this shift is designed to enhance pricing transparency, it necessitates closer short-term monitoring of physically backed silver investment vehicles during the transition period.