Silver experienced its steepest one-day decline since March 2026, falling 5.61% to settle at $61.85/oz on COMEX. The session low of $61.54 represented a technical breakdown below the $62 support level that had held since mid-May.
The sell-off was amplified by weak Chinese manufacturing data released overnight. The Caixin Manufacturing PMI came in at 49.8, slipping below the 50 threshold that separates expansion from contraction. Silver's dual role as both a monetary and industrial metal made it particularly vulnerable to the growth concerns.
Gold dragged the broader precious metals complex lower, but silver's decline was more severe due to its higher beta. The gold-silver ratio widened to 67:1, up from 63.5:1 last week, indicating silver has significantly underperformed gold during the correction.
Industrial demand concerns were compounded by the ongoing correction in technology stocks, which reduced investor risk appetite across commodities. Silver's significant industrial applications in electronics, solar panels, and soldering make it sensitive to tech sector weakness.
Physical silver demand for solar photovoltaic manufacturing continues to grow at 12% annually, but near-term price action is dominated by macro-driven speculative positioning.
The 5.6% drop creates a tactical buying opportunity for industrial consumers. Silver's long-term demand thesis from solar and electronics remains intact. Consider fixing Q4 requirements near current levels, as the $60 zone has provided strong support since early 2025.