Silver prices tumbled sharply during Asian trading on Thursday, leading a broad sell-off across the precious metals market and erasing most of the short-lived rebound seen earlier this week. The steep decline highlighted renewed selling pressure driven by global macroeconomic factors, currency movements, and weakness originating from China.
Spot silver dropped as much as 16.7%, falling to around $73.56 per ounce and moving back toward the lows recorded after last week’s heavy market rout. Silver futures for March delivery also saw significant losses, plunging more than 10% to roughly $73.38 per ounce. The sudden downturn underscored heightened volatility in silver prices and renewed bearish sentiment among traders.
The sell-off unfolded abruptly during the Asian session and coincided with a modest uptick in the U.S. dollar. According to Chris Weston, Head of Research at Pepperstone, the sharp move in silver prices began in China, where Shanghai silver futures experienced a notable slide. This weakness quickly spilled over into CME futures markets and spot silver trading, amplifying losses across global markets.
A stronger dollar has been a persistent headwind for precious metals over the past week. The greenback rebounded from near four-year lows after markets reassessed expectations around U.S. monetary policy. Investors viewed Kevin Warsh, U.S. President Donald Trump’s nominee for the next Federal Reserve Chair, as less dovish than anticipated, reducing hopes for aggressive rate cuts. This shift in sentiment continued to weigh on silver and other metal prices in recent sessions.
Traders also remained biased toward the dollar ahead of key central bank meetings in Europe scheduled for Thursday, as well as the highly anticipated U.S. nonfarm payrolls report due on Friday. These events added to market uncertainty and encouraged a risk-off stance, further pressuring silver prices.
Overall, the combination of dollar strength, weak Chinese futures, and cautious positioning ahead of major economic data fueled renewed selling in silver, keeping precious metals under pressure and maintaining elevated market volatility.