COMEX silver futures fell 1.32% to settle at $65.38/oz on June 23, the lowest close in two weeks, as industrial metals faced headwinds from weaker manufacturing data. The US flash manufacturing PMI contracted to 49.2 in June, below the 50 expansion threshold, with new orders declining for the third consecutive month.
Silver's dual role as both a precious metal and industrial commodity has weighed on prices. The silver component in solar photovoltaic manufacturing — which accounted for 18% of industrial silver demand in 2025 — faces headwinds as Chinese solar module producers cut production by 8% in June amid oversupply.
The gold-silver ratio widened to 64.3, up from 63.5 a week ago, reflecting silver's relative underperformance. The ratio remains below the 2025 average of 68, indicating silver is still relatively expensive versus gold on a historical basis.
COMEX silver warehouses held 287 million oz as of June 20, down 2% month-on-month but still 15% above year-ago levels. Physical offtake has been steady, with ETF holdings at 22,400 tons, near multi-year highs.
Silver's industrial exposure makes it vulnerable to manufacturing weakness. Maintain strategic hedges but avoid adding fresh long positions until the gold-silver ratio moves above 66, which would present a better entry for industrial users.