Silver Futures Suffer Sharpest One-Day Slide Since 2021 After Overnight Record

Silver prices reversed course dramatically on Monday, posting their steepest single-day decline in almost four years only hours after reaching an all-time high. March silver futures sank 8.7% to settle at $70.46 per ounce on the Comex division of the New York Mercantile Exchange, erasing a portion of the precious metal’s extraordinary advance in 2025.

The pullback followed an overnight surge that briefly lifted prices above $80 per ounce for the first time. From that intraday peak, futures plummeted roughly 15%, the widest high-to-low swing since August 2020, when a similar move of 16.85% was recorded. Monday’s loss eclipsed every session since February 2021, underscoring the speed with which traders locked in gains after a year of exceptional performance.

Analysts attributed the abrupt reversal mainly to profit-taking and year-end tax-loss strategies. Jeff Kilburg, chief executive of KKM Financial, noted that investors had significant paper profits after the metal’s climb of more than 140% year to date. Silver opened 2025 at just above $20, making it one of the strongest-performing assets across global markets.

The retreat in silver coincided with a broader sell-off in precious metals. February gold futures settled 4.6% lower at $4,343.60 per ounce after topping $4,550 earlier in the month. Even with Monday’s decline, gold remains ahead more than 60% for the year, but it has trailed silver’s percentage gain throughout 2025.

Several factors fueled the rapid escalation in both metals before Monday’s downturn. Investors seeking safety amid elevated geopolitical tensions and concerns over the expanding U.S. fiscal deficit channeled funds into hard assets. Silver and gold are also viewed as stores of value that may appreciate when the U.S. dollar weakens due to inflation or economic uncertainty. A softer dollar additionally lowers the cost of dollar-denominated commodities for foreign buyers, encouraging international demand.

Aside from its monetary appeal, silver benefited from industrial consumption tied to emerging technologies. The metal is a critical component in solar photovoltaic cells, data-center hardware, and electric vehicles, sectors that have expanded quickly in 2025. According to a recent Silver Institute report, fabrication demand for these applications has outpaced new mine supply, tightening market balances and supporting higher prices.

Looking ahead, Kilburg expects silver to resume its upward trajectory in 2026, projecting potential targets of $90 to $100 per ounce. Those levels would represent additional gains of roughly 27% to 40% from Monday’s settlement. He cited what he described as a “dramatic” supply deficit alongside robust industrial offtake as key drivers that may keep the market buoyant.

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Even after the day’s sharp sell-off, the year-to-date chart shows silver markedly outperforming not only gold but also major equity benchmarks and most commodities. Market participants will watch closely to see whether the retreat stabilizes prices or signals a deeper correction after months of hefty inflows.

Traders now turn their attention to upcoming economic data and central-bank commentary for clues about the path of interest rates and the dollar. Any indication of renewed inflation pressures or further currency weakness could reignite interest in precious metals, while signs of policy tightening might cap additional rallies.

Monday’s volatility reminds investors that historically thin holiday trading conditions and year-end portfolio adjustments can amplify price swings. Whether the session proves to be a brief setback or the start of a broader consolidation phase, silver’s performance thus far in 2025 places it firmly at the center of commodity market discussions.

Crédito da imagem: Akos Stiller | Bloomberg | Getty Images