Shares of the iShares Silver Trust cratered 8.3% to $62.99 on Thursday as a toxic cocktail of scorching inflation data, rising bond yields, and a hawkish Federal Reserve crushed precious metals. Silver fell to $66.93 per ounce by morning—a $10.84 drop from the prior day , extending a brutal week-long slide that has erased 17.6% of the ETF's value since March 12. For holders of SLV, which simply tracks the silver spot price, there's no earnings beat or product launch coming to save the quarter — only macro forces, and right now every one of them is blowing the wrong way.
• Wholesale Prices Came in Twice as Hot as Expected, and It's Not Just Oil. U.S. producer prices rose 0.7% in February, more than double economists' expectations of 0.3%, with core prices (stripping out food and energy) also running hot at 0.5%.
It was the biggest monthly jump in producer prices in seven months, with goods prices soaring 1.1%. Crucially, the data covers February — before the U.S.-Israel strikes on Iran began on Feb. 28 — meaning none of the war's energy shock has hit the numbers yet. That's a problem for silver: hotter inflation means higher interest rates for longer, and silver pays no income, making it less attractive versus Treasury bonds.
• The Fed Closed the Door on Fast Rate Cuts. The FOMC voted 11-1 to hold rates at 3.5%–3.75%, with slightly higher inflation projections for 2026.
The dot plot showed more members shifting toward fewer cuts — Powell noted "four or five people went from two to one."
Now 14 of 19 members see one or zero cuts this year. Fewer rate cuts mean Treasury yields stay elevated, maintaining the opportunity cost of owning metals that generate zero return.
• Rising Yields Are Silver's Kryptonite — and They're Not Done. The 10-year Treasury yield climbed over 6 basis points to 4.265%, while the 2-year rose more than 10 basis points to 3.775%.
The Fed raised its inflation projections amid a hot PPI reading and rising energy prices from attacks on Iranian infrastructure. With oil near $100/barrel, the inflation math gets worse from here — not better.
• Silver's Industrial Demand Won't Cushion the Blow. Silver came under strong pressure due to a weak industrial outlook and currency movements, defying its usual safe-haven appeal.
Silver's industrial applications serve as an important demand driver, but cost increases may erode that demand long term, leading to greater price volatility. SLV has now lost 42% from its 52-week high of $109.83 — and the next inflation report will finally include the Iran energy shock.