Silver prices experienced a dramatic decline on Thursday, with the spot metal shedding 9.4% to trade at $76.37 per troy ounce by midday in New York. The sell-off followed a volatile session where prices swung between a low of $74.97 and a high of $84.98.
ETFs and Miners Follow Metal Lower
The sharp drop in the underlying commodity pressured related equities. The iShares Silver Trust (SLV) declined 9.8%, while the Sprott Physical Silver Trust fell 11.1%. Major mining companies also retreated, with Hecla Mining down 8.8%, First Majestic Silver off 7.5%, and Pan American Silver finishing 6.4% lower.
Strong Jobs Data Shifts Rate Expectations
The downturn was triggered by robust U.S. employment figures, which prompted traders to reconsider the timeline for potential Federal Reserve interest rate cuts. Recent data showed nonfarm payrolls added 130,000 jobs in January, with the unemployment rate dipping to 4.3%. This has led some analysts to believe rate reductions in the first half of the year are less likely.
This pullback interrupts a significant rally for silver, which reached a record high of $121.60 in late January following a 147% surge in 2025. The Silver Institute projects global demand will remain steady this year, supported by retail investment offsetting softer industrial and jewelry consumption.
All Eyes on Friday's Inflation Report
Market attention now turns squarely to Friday's release of the U.S. Consumer Price Index for January. The inflation reading is expected to be the next major catalyst for monetary policy expectations. A softer number could revive bets on imminent rate cuts and potentially lure buyers back to silver, while a firmer reading may extend the pressure on the metal as real yields climb.
The dual nature of silver—serving as both a haven asset and an industrial commodity—often leads to amplified price swings compared to gold, especially during sessions where interest rate expectations and growth outlooks shift simultaneously.
