Silver suffered its worst single-session decline since March 2026, falling 4.78% to $64.32/oz on COMEX. The selloff was driven by broad risk-off positioning in precious metals as the dollar strengthened and traders repriced Federal Reserve rate hike expectations following stronger-than-expected jobs data.
The decline accelerated in afternoon trading as stop-loss orders were triggered below $66, with volumes reaching 2.3x the 20-day average. Open interest in COMEX silver futures fell 3.2% as speculative long positions were liquidated, suggesting momentum-driven selling rather than fundamental repricing.
Despite the sharp correction, silver remains more than 100% higher than this time last year, reflecting the structural demand growth that has driven the metal's outperformance versus gold. The gold-to-silver ratio has widened to 65:1, up from 58:1 a month ago, approaching the historical mean of 70:1.
The silver market is in a unique position: industrial demand — particularly from solar photovoltaics — continues to grow at 14% annually, while mine supply growth remains constrained at 1-2%. The 2026 deficit is projected at 5,000-6,000 tonnes, the fourth consecutive annual shortfall.
The silver selloff is technical, not structural. Industrial demand drivers — solar, EVs, electronics — remain intact. For procurement, the $60-65 zone offers an attractive entry for hedging, especially given the 100%+ YoY gain still in place. The gold-to-silver ratio suggests silver is undervalued relative to gold.