Silver prices plunged sharply on March 23, 2026, with the spot price dropping to approximately $63.99 to $64.77 per troy ounce in early trading, reflecting losses of 5% to 8% from recent levels as escalating U.S.-Iran conflict, surging oil prices and a stronger U.S. dollar fueled a broad selloff in precious metals.

Silver Price
Silver Price

The white metal extended its decline into a fourth consecutive week, with COMEX silver futures for May 2026 delivery settling around $64.69, down roughly $4.97 or 7.14% in the latest session according to CME Group data. Intraday lows dipped toward $61.21, marking one of the steepest single-day drops in recent memory. The move followed a volatile period where silver had peaked above $120 per ounce in January 2026 before correcting sharply.

Analysts attributed the pressure to a confluence of factors. Ongoing Middle East tensions, including threats from U.S. President Donald Trump regarding strikes on Iranian infrastructure if the Strait of Hormuz remains disrupted, have driven Brent crude and WTI oil prices higher, stoking inflation fears. This has prompted markets to price in a hawkish stance from major central banks, including the Federal Reserve, which traders now see maintaining or even hiking rates amid persistent inflationary impulses from energy costs.

A stronger dollar, often inversely correlated with commodities priced in USD, added further downward pressure. As the greenback gained against major currencies, silver became more expensive for holders of other currencies, reducing demand. Trading Economics reported silver at $63.47 per ounce midday March 23, down 6.11% from the prior day, with monthly losses exceeding 27% despite still holding 92% gains year-over-year from early 2025 levels.

In India, where silver holds cultural and investment significance, domestic prices mirrored the global rout. MCX silver futures for May 2026 delivery crashed 11.5%, settling at around Rs 2,00,510 per kilogram after a Rs 26,262 drop. Physical market rates hovered near Rs 2,44,900 per kilogram in major cities like Delhi, Mumbai and Kolkata, with per-10-gram quotes at Rs 2,449. Some reports noted even steeper localized declines to Rs 2,30,000 per kg in certain areas, reflecting heavy selling pressure.

The selloff has been particularly acute for silver due to its dual role as both a safe-haven asset and an industrial metal. Demand from solar panels, electronics, EVs and other green technologies has faced headwinds from higher borrowing costs and economic uncertainty tied to the geopolitical crisis. Unlike gold, which retains stronger monetary appeal, silver's industrial exposure amplified losses as risk-off sentiment dominated.

Historical context shows silver's volatility: it reached an all-time high near $121.64 in January 2026 amid earlier bullish momentum, but the subsequent correction has erased much of those gains. Year-to-date, silver remains positive in some annual aggregates but has underperformed gold significantly in recent weeks, with the gold/silver ratio widening.

Market participants noted bargain-hunting potential at current levels. Physical premiums on coins and bars have compressed in short windows following sharp drops, historically signaling dealer-level demand recovery. Some forecasts from Trading Economics project silver rebounding to $67.96 by quarter-end and $81.66 in 12 months, assuming stabilization in energy markets and policy responses.

However, near-term risks persist. Escalation in the U.S.-Iran standoff could further elevate oil and inflation expectations, delaying anticipated rate cuts and weighing on commodities. Conversely, any de-escalation or diplomatic progress might trigger a relief rally in risk assets, including precious metals.

Silver's performance has drawn comparisons to broader market dynamics. Equities faced pressure alongside commodities, with investors rotating toward perceived safety amid uncertainty. Gold also declined, though less severely, trading near $4,265 per ounce with losses around 5%.

For investors, silver remains attractive for diversification, particularly given its supply constraints from mining and recycling. Global mine production has struggled to keep pace with industrial demand growth in recent years, potentially supporting prices on any demand rebound.

As trading continues March 23, focus shifts to upcoming economic data, Fed commentary and Middle East developments for directional cues. With no major U.S. holidays interrupting sessions, volatility could persist into the week.

Silver's current trajectory underscores its sensitivity to macro forces. While the drop has been painful for holders, it may present entry points for those betting on eventual stabilization in global energy markets and renewed industrial appetite.