Silver prices are under pressure as a stronger US dollar, rising yields, and weaker growth in China weigh on the market. After a 10% rally in the week ending February 27, spot silver fell from $93.78 to $81.71, dropping over 2% in a single day.
Recent US economic data has been mostly positive. ADP employment in February rose to 63,000, beating estimates, while ISM services climbed to 56.10, marking the fastest growth since July 2022. Manufacturing data was also strong, with ISM manufacturing at 52.4 and S&P Global US manufacturing PMI at 51.6. These reports signal a solid US economy, supporting the dollar and pushing investors away from silver as a safe haven.
The US Dollar Index gained about 0.5% to 99.21, while US Treasury yields rose, with 2-year yields at 3.59% and 10-year yields at 4.14%. Safe-haven flows into the US, partly due to the ongoing Iran conflict, are strengthening the dollar further, adding pressure on silver.
China’s recent announcement of a 2026 GDP growth target of 4.5-5%—the lowest since 1991—also adds to the bearish outlook. About 70% of silver demand comes from industrial use, making the metal sensitive to China’s slower growth.
Global silver ETF holdings are at 829.78 million ounces, down nearly 3% year-to-date, while COMEX registered silver inventories are near a two-and-a-half-year low at 87.14 million ounces.
Analysts say silver may test support at $77. If this level breaks, it could fall further to $72-$74. Resistance is expected around $87-$92. Market watchers advise selling into rallies with tight stop losses.
Upcoming US data, including nonfarm payrolls, retail sales, CPI, and PCE price index, along with China’s February CPI and PPI, will influence silver’s next move. The USDINR exchange rate may also impact silver prices, especially after the Reserve Bank of India’s recent interventions.
