09-06-2026

Executive Summary:

Silver witnessed a sharp correction of nearly 10.01% during the week, trading in a wide range of $66.57 to $77.01 per ounce amid elevated volatility and risk-off sentiment. The decline was largely driven by strong U.S. labor market data, where the economy added approximately 172,000 jobs in May, nearly double the expected 85,000, signaling continued economic resilience and reducing expectations of near-term Federal Reserve rate cuts.

Stronger macro data pushed U.S. Treasury yields higher, with the 10-year yield rising to around 4.57% and the 30-year yield nearing 5.03%, strengthening the dollar and increasing pressure on non-yielding assets like silver. This triggered broad-based selling across precious metals, leading to a sharp bloodbath in the sector. Despite the correction, silver’s long-term industrial demand outlook remained intact, while Indian MCX prices mirrored global weakness due to heavy futures liquidation and cautious retail participation.

09-06-2026

Key drivers which impact silver prices

Geopolitical Developments

Geopolitical headlines remained a key driver for silver this week. Markets reacted to mixed signals on US-Iran negotiations, with President Trump repeatedly indicating that a potential agreement could be near despite conflicting reports on communication between the two countries. Reports of a possible Israel-Hezbollah ceasefire, Iran`s announcement of ending military operations, and Trump`s recent comments favoring de-escalation raised hopes of easing Middle East tensions.

At the same time, concerns over Hormuz Strait disruptions showed that geopolitical risks have not completely disappeared. The constant flow of contradictory headlines created volatility across commodity markets. While lower geopolitical risks pressured crude oil prices, silver remained supported by ongoing uncertainty and safe-haven demand.

09-06-2026

Industrial Demand

Industrial demand remained a key factor supporting silver prices during the week. According to the Silver Institute`s World Silver Survey 2025, industrial applications account for approximately 56% of total global silver demand. In 2026, demand from solar panels, electric vehicles, electronics, and data centers is expected to remain strong as countries continue investing in clean energy and digital infrastructure. This sustained industrial demand provides underlying support to silver prices and helps offset pressure from macroeconomic factors such as a stronger U.S. dollar and higher interest rates.

09-06-2026

U.S. Dollar Index (DXY)

The U.S. Dollar Index remained a key driver for silver prices this week, supported by strong U.S. economic data and expectations that the Federal Reserve may keep interest rates higher for longer. Technically, DXY continued to form higher highs and higher lows, indicating a strengthening trend, and climbed close to the $100 level. A stronger dollar generally pressures silver by making it more expensive for international buyers. As a result, silver`s upside remained limited during the week, although geopolitical uncertainty and safe-haven demand helped cushion the downside.

09-06-2026

Federal Reserve Policy and Interest Rate Outlook

Silver prices remained under pressure during the week as the U.S. Federal Reserve kept its benchmark interest rate unchanged at 3.50%–3.75%. The U.S. economy added significantly higher than the expected, while the unemployment rate held steady at 4.3%, indicating a resilient labor market. These developments reinforced expectations that the Fed may delay interest rate cuts and keep borrowing costs elevated for longer. As a result, investors favored interest-bearing assets over silver, limiting upside in silver prices during the week.

09-06-2026

U.S. Economic Data and Market Impact

Key Economic Data Released This Week

Several U.S. economic indicators released during the week pointed to a resilient economy. The ISM Manufacturing PMI rose to 54.0, exceeding market expectations of 53.3 and indicating expansion in manufacturing activity. Similarly, JOLTS Job Openings increased to 7.62 million, well above the forecast of 6.87 million, reflecting continued strength in the labor market. Although Non-Farm Payrolls rose by 172,000 jobs, higher than the expected 85,000, the unemployment rate remained steady at 4.3%.

Overall, the stronger-than-expected economic data reinforced expectations that the Federal Reserve may maintain higher interest rates for longer. This supported the U.S. dollar and limited investor demand for silver, creating short-term pressure on prices.

Upcoming Economic Data to Watch

Markets will closely monitor the upcoming U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data, which are key measures of inflation. The market expects CPI inflation to rise to 4.2% year-on-year from 3.8% previously, while PPI is expected at 0.7% month-on-month compared to 1.4% in the previous reading.

Higher-than-expected inflation figures could strengthen expectations of prolonged higher interest rates, which may weigh on silver prices. Conversely,lower than expected softer inflation data could increase hopes of future rate cuts and provide support to silver. As a result, inflation data will be a major driver of silver price movements in the coming week.

09-06-2026

Recent News Update on Silver

MCX launched Silver 100 Futures on June 1, 2026, allowing investors to trade silver in lots of just 100 grams. The smaller contract size lowers the capital required for participation, making silver futures more accessible to retail investors, small jewelers, and businesses.

The launch is expected to increase market participation and liquidity over time, supporting more efficient price discovery in the silver market. While it does not directly impact silver prices, broader participation and improved accessibility could strengthen overall investor interest in silver.

Government Tightens Silver Import Rules

The Indian government has tightened silver import regulations by making DGFT (Directorate General of Foreign Trade) approval mandatory for imports of high-purity silver, including silver bars, grains, powder, and other forms containing 99.9% silver. The move comes after India`s silver imports surged to record levels, with imports rising 157% year-on-year in April and reaching nearly $12 billion in FY2025-26.

The new rules could slow the flow of imported silver into the country and may tighten domestic supply over time. While the impact on prices is unlikely to be immediate, reduced import availability could support physical silver premiums and provide a positive long-term backdrop for silver prices in India.

09-06-2026

Demand and Supply Dynamics

Silver market fundamentals remained supportive this week as global demand continued to exceed supply, although the market saw some short-term pressure and volatility during the week. Strong demand from investors and industries such as electronics, electric vehicles, power infrastructure, and renewable energy kept the overall outlook positive. Recent developments like Hyperscale Data increasing its physical silver holdings also highlight continued interest in silver as a long-term investment asset.

On the supply side, silver production growth remains limited. Key global producers include Mexico, China, Peru, and Chile, with Mexico being the largest producer. While companies like Aya Gold reported strong drilling results in Morocco and Sunshine Silver listed on the NYSE to support future mine development, these projects are unlikely to add significant supply in the near term. In addition, stricter silver import rules in India may further tighten domestic availability.

On the demand side, strong buying continues from both industrial and investment segments, especially from India and China, along with global ETF and institutional participation.

Overall, despite this week’s mild price pressure due to profit booking and global uncertainty, the broader structure remains unchanged, strong demand and limited supply continue to provide long-term support to silver prices

09-06-2026

MCX vs Physical Silver: Parity & Disparity

Currently, there is a price gap between MCX silver futures and the physical silver market in India. At present, this difference is around ₹2,000 per kg, while earlier during the import duty news period, it had widened significantly to nearly ₹11,000 per kg.

This gap has reduced mainly because the market has started stabilising. After the earlier sharp volatility, physical demand is now relatively more steady compared to before. Dealers who were holding excess inventory are also gradually selling it off, which has reduced pressure on physical prices. 

Another reason is that the impact of import duty-related news has now been absorbed by the market. Earlier, this news created sharp price distortions between MCX and physical silver, but over time, prices have adjusted and become more aligned.

At the same time, MCX silver prices are now tracking global silver markets more closely. This has helped reduce abnormal differences between futures and physical prices. Some arbitrage activity by traders has also contributed to narrowing this gap.

Overall, the silver market is becoming more balanced again. The large gap of around ₹11,000 per kg seen earlier has now come down to about ₹2,000 per kg, showing improved price stability between MCX and physical silver. 

09-06-2026

Conclusion

Silver declined nearly 10.01% during 1–9 June 2026, driven by stronger-than-expected U.S. economic data and rising bond yields. Robust job creation and elevated Treasury yields (10-year ~4.57%, 30-year ~5.03%) strengthened the U.S. dollar and reduced expectations of near-term Federal Reserve rate cuts, leading to broad-based selling in precious metals.

Going forward, silver’s outlook will largely depend on upcoming U.S. inflation data, particularly CPI and PPI readings, as they will guide Federal Reserve policy expectations and interest rate direction. While short-term volatility may persist, the long-term demand outlook remains supported by industrial usage, even as MCX prices continue to track global sentiment and macroeconomic data. 

09-06-2026

Technical Analysis

On the daily timeframe, silver appears to be forming a Head and Shoulders pattern, with prices recently breaking below the neckline, indicating a bearish bias. However, a short-term pullback towards the $70–71 resistance zone cannot be ruled out. As long as silver remains below $74–75, the preferred strategy remains sell on rise. Traders may consider selling near $71, with a stop loss above $78 and a downside target of $61

09-06-2026

Details Of Research Analyst 

https://commoditysamachar.com/disclosures-and-disclaimers/