Silver price pares gains to $76 as dollar dip fails to offset inflation fears

Traders Union
All News
Financial News
Silver price retreats to $76 as inflation shock and Fed jitters weigh on markets.

All news

Editors' Picks

Crypto News

Financial News

Market Voices

Billionaires

Companies

Broker News

Regulators News

Ezequiel Gomes

18.03.2026

Silver price pares gains to $76 as dollar dip fails to offset inflation fears — Silver prices hit a one month low on March 18.

Silver (XAG/USD) plunged to a one month low this Wednesday, March 18. The metal dropped more than 5% during a volatile session, breaching the $80 level and descending toward $76 as investors grappled with core inflation data that matched a three year high.

Highlights

Silver sank as low as $76.36 during the session, marking its weakest performance since February.
The 10-year Treasury yield climbed toward 4.24% while the U.S. dollar index showed fresh momentum.
Core producer price inflation hit 3.9% annually, effectively erasing market bets for a mid-year interest rate cut.

The technical outlook for silver has deteriorated rapidly after the metal failed to defend the critical $78.12 support zone. On shorter timeframes, price action has formed a clear descending triangle characterized by a series of lower highs and a flat base that finally gave way under heavy selling pressure. This breakdown suggests that the bearish momentum originating from the March peak near $96 remains firmly in control of the trend.

Resistance is now firmly established at the $80.56 level, where the 20-period exponential moving average is currently rolling over. For a neutral bias to return, silver would need a decisive recovery above this average followed by a break of the downward sloping trendline near $84. Until these levels are reclaimed, the market structure remains vulnerable to further liquidations as short-term traders treat any intraday bounces as an opportunity to exit long positions.

The absence of a bullish divergence suggests that any recovery on Silver price might be limited to a test of the broken $78 level. If the downtrend continues to gain traction, the next major objective for bears sits at the $72 mark, which represents a key horizontal floor from mid-February.

Silver price dynamics (February - March 2026). Source: TradingView.

Central bank caution meets energy driven inflation

The main driver for yesterday's slump on Silver was the realization that inflation is still a danger on the horizon. With producer prices rising 0.7% in February, the Fed is widely expected to maintain a restrictive policy position. This shift in expectations has forced a massive recalibration in the futures market, with traders now pricing in a high probability that interest rates will remain unchanged through the end of 2026.

Silver continues to show some resilience from the complex situation in the Middle East. This supply risk is creating a clear floor that prevents silver from a total collapse at this point, once many investors keep a portion of their portfolios in metals as a hedge against a potential global energy crisis.

Industrial demand remains a secondary but vital pillar of support, particularly as solar and electronics manufacturing in the East shows signs of a rebound. However, the recent outflows from silver-backed exchange-traded funds, totaling over 1.5 million ounces in the last fortnight, suggest that speculative and institutional investors are currently prioritizing cash and yields over physical possession. The gap between paper pricing and physical premiums is widening as delivery demand continues to stress global inventory levels.

Volatile reactions expected following policy verdict

Should the Fed deliver a hawkish hold that emphasizes the need for further combat energy costs, silver could quickly slide toward $74. In this scenario, a strengthening U.S. dollar would likely act as a drive for a deeper reset, testing the convictions of long-term holders. Bulls would need to see a successful defense of the February lows to prevent a broader technical breakdown toward $68.

Conversely, if the central bank acknowledges the downside risks to economic growth posed by the war, a relief rally could be triggered. A surge back above $82 would invalidate the recent down move and suggest that the market has fully priced in the inflation shock. Given the high stakes of the upcoming press conference, volatility is expected to remain extreme, with sharp two-way swings likely as the market parses the updated dot plot and economic projections.

Silver is still trading far above where it began the year, even after this week’s sharp pullback, which is why short-term volatility is likely to remain elevated. The current move matters because it will help determine whether the latest drop was a fast reset inside a larger uptrend or the start of a broader cooling phase.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.