Spot Silver Falls Below $80 Mark Amid Precious Metals Selloff
Spot silver has fallen below the critical $80 per ounce mark, trading at approximately $79.87 as of March 17, 2026. The decline represents a significant pullback from the highs above $120 reached earlier in 2026.
What Triggered the Silver Price Drop?
The correction in silver prices is driven by a confluence of factors:
- Profit-taking after an extended rally: Silver surged 144% in 2025 and continued its momentum into early 2026, reaching overbought territory. Silver experienced its worst single-day plunge since 1980 in January, dropping over 30%.
- CME margin hikes: The Chicago Mercantile Exchange raised margin requirements on silver futures contracts multiple times, forcing leveraged traders to liquidate positions. A 36% hike in maintenance margins triggered a wave of forced liquidations.
- Stronger U.S. dollar: The nomination of Kevin Warsh as the next Federal Reserve Chair eased concerns about Fed independence, sending the dollar higher and putting pressure on dollar-denominated commodities.
- Geopolitical repricing: The outbreak of conflict in the Middle East initially triggered safe-haven demand, but silver fell instead of rising as short-term capital began concentrated profit-taking.
Gold Also Under Pressure
Gold briefly lost the $5,000 level during the Asian trading session on March 16, reflecting a broader precious metals correction. Both metals had been in “aggressively overbought territory,” according to Standard Chartered’s global commodities research team.
Technical Outlook: XAGUSD Chart Analysis
As seen on the XAGUSD daily chart, silver has broken below the psychological $80 level, which had previously acted as a strong support zone during the rally. The price action shows a clear bearish momentum with consecutive red candles, indicating sustained selling pressure.
Key technical levels to watch:
- Immediate support: $78 – $76 range, which aligns with previous consolidation zones.
- Major support: $72 – $70, a level that could attract significant buying interest if the selloff deepens.
- Resistance: A reclaim of $80 would be the first bullish signal, with $85 and $90 as the next upside targets.
Volume has notably increased during the decline, suggesting that the move is driven by conviction rather than thin liquidity. RSI indicators are approaching oversold territory, which could set the stage for a short-term bounce.
What’s Next for Silver?
The $80 level is a critical support zone. A sustained break below could push silver into the $70s, while a rebound could target $90. Analysts note that silver’s long-term fundamentals remain intact, supported by industrial demand from solar panels, EVs, and electronics, as well as China’s export restrictions on refined silver.
Despite the short-term correction, the structural supply deficit — now in its fifth consecutive year — and central bank accumulation suggest the bull market may have further to run once the current excess is cleared.
Sources: Kitco / JM Bullion / CME Group / Morningstar / TradingView
Disclaimer: This content is for market information purposes only and is not investment advice.
