Silver Prices Stabilize Near $70/ Oz After Sharp Decline Amid US-Iran Ceasefire and Inflation Pressures

24.03.2026 - 15:05:29 | ad-hoc-news.de

Spot silver finds support around $70 per ounce following a volatile drop from over $80, driven by a US-announced pause in Iran attacks, persistent high US interest rates, and weakening industrial demand outlook for US investors holding silver ETFs or futures.

silver price, spot silver, silver market - Foto: THN

Spot silver prices have stabilized around $70 per ounce after plunging from highs above $80 earlier this month, offering a potential entry point for US investors amid mixed signals from geopolitics and macroeconomics.

As of: March 24, 2026, 10:05 AM ET

Recent Price Action in Spot Silver and Futures

The silver market has undergone significant volatility in recent weeks. Spot silver oscillated above $80 per ounce between February 19 and March 13, 2026, before declining sharply. As of the latest trading, prices appear to have found a new floor near $70 per ounce. This stabilization follows yesterday's announcement of a pause in attacks on Iran, which eased some safe-haven demand pressure on precious metals. COMEX silver futures for near-term delivery have mirrored this trend, trading in the mid-$60s to low $70s range during recent sessions, distinct from spot but influenced by similar factors.

For US investors, this development matters because silver ETFs like SLV, which track spot prices, have seen corresponding pullbacks, presenting opportunities in a portfolio hedging inflation or industrial exposure. The LBMA silver price benchmark, while not directly quoted in these reports, underpins physical delivery and has likely followed the broader spot decline, though official benchmark auctions remain separate from intraday futures volatility.

Geopolitical De-escalation as Key Support

Philip Newman, managing director at Metals Focus, noted that 'for the time being, silver prices seem to have found a new floor, supported by yesterday’s announcement of a pause in attacks on Iran.' This US President Donald Trump-announced five-day ceasefire in the US-Iran conflict has reduced immediate risk premiums embedded in precious metals pricing. Earlier, escalating tensions drove silver toward $80/oz as investors sought safe-haven assets alongside gold, which hit $4,500 levels before retreating.

However, the ceasefire is temporary, and any resumption could reignite upward pressure. US investors should monitor Middle East developments closely, as silver's dual role as a monetary and industrial metal amplifies its sensitivity to such events compared to gold. Spot silver's drop from recent peaks represents about a 12-15% correction, with COMEX futures showing even steeper intraday swings of 3-6% in single sessions.

Bearish Technical Signals Emerge

Technical analysis points to ongoing downside risks. Silver prices have declined in recent intraday trading, following a minor downward trendline that supports a bearish path in the short term. Trading below the 50-period exponential moving average (EMA50) reduces chances of a near-term recovery. Relative strength indicators show a negative crossover after overbought conditions, suggesting potential negative divergence and strengthening bearish pressure.

In the broader silver market, MCX silver futures in India for May 2026 delivery dropped 3.2% to Rs 217,777 per kilogram (equivalent to roughly $66/oz at current exchange rates), reflecting global sentiment spillover. US investors trading COMEX futures should note that front-month contracts have tested supports near $65-66, with resistance at $70-72. This divergence between spot stabilization at $70 and futures negativity underscores liquidity and positioning differences.

US Macro Factors Weigh Heavily: Rates and Inflation

High US interest rates and shifting Federal Reserve expectations are primary headwinds for silver. Precious metals have fallen amid rising inflation risks, which paradoxically delay rate cuts and favor yield-bearing assets over non-yielding silver. Gold slipped below $4,300 in recent trading, down 5.5% or $250 in a day, with silver experiencing sharper 3-4% drops to $66.80/oz levels intraday.

For US investors, Treasury yields climbing above key levels reduce the opportunity cost of holding silver, directly pressuring spot and futures prices. Markets now price in a prolonged higher-for-longer rate environment, diminishing silver's appeal as an inflation hedge. Spot silver's sensitivity to industrial demand exacerbates this, as higher rates could slow economic growth and curb usage in solar panels, electronics, and EVs—key demand drivers comprising over 50% of annual silver consumption.

Industrial Demand Outlook: Solar and Beyond

Silver's industrial profile sets it apart from gold. Despite high prices earlier this year, solar demand remains robust, but short-term economic slowdown fears from elevated oil prices (Brent above $100/barrel) threaten manufacturing. The Silver Institute's annual forecasts typically highlight supply deficits, but current price action reflects liquidity drains over structural imbalances.

US investors exposed via ETFs or futures should consider that ETF flows have turned negative recently, with outflows accelerating the decline. COMEX positioning data, if updated post-March 23, likely shows speculators reducing long positions, adding to bearish momentum. Physical demand from India and China has provided some floor, but not enough to counter macro pressures.

Market Implications for US Investors

This stabilization near $70/oz positions silver as a tactical opportunity for US investors balancing portfolios against dollar strength and yield curves. The US dollar index has firmed amid rate hike bets, inversely correlating with silver prices. Silver ETFs like iShares Silver Trust (SLV) and Aberdeen Standard Physical Silver Shares ETF (SIVR) offer direct spot exposure, while futures provide leverage but higher risk.

Risks include renewed geopolitical flares or unexpectedly hot US inflation data, which could push silver back toward $75-80. Conversely, confirmed Fed dovishness or industrial slowdown confirmation might test $65 supports. Broader precious metals weakness—platinum down 2.9%, palladium 0.5%—signals correlated downside.