- Silver fell 2.11% to US$57.58/oz (approx. C$79.15), the largest single-day drop among major commodities on July 31, 2026.
- A China manufacturing PMI miss of 48.7 versus 50.1 consensus triggered the selloff, hitting silver’s industrial demand outlook hard.
- First Majestic Silver (TSX: AG) dropped 3.4% and Endeavour Silver (TSX: EDR) fell 2.9%, while MAG Silver (TSX: MAG) held up better at -1.6%.
- Scotiabank holds a US$64/oz 12-month silver target; traders now eye US$56.80 support as the next critical technical floor.
Silver dropped 2.11% to $57.58/oz (US$57.58; approximately C$79.15 at a 1.374 USD/CAD rate) by midday on July 31, making it the worst-performing major commodity in today’s session and snapping a three-session consolidation range just below the $59 resistance level. The move erased roughly US$1.24/oz and puts silver on pace for its steepest single-day decline in over six weeks.
What’s Driving the Selloff
The catalyst is a weaker-than-expected July manufacturing PMI print out of China — the world’s largest industrial silver consumer — which slipped to 48.7, missing the consensus estimate of 50.1 and marking the third consecutive month of contraction. Solar panel fabrication and electronics assembly account for roughly 60% of global silver industrial demand, so any deterioration in Chinese factory activity hits silver harder than gold. Compounding the pressure, the U.S. Dollar Index (DXY) firmed 0.4% following a stronger-than-forecast U.S. Employment Cost Index reading this morning, making dollar-denominated metals more expensive for foreign buyers.
Technically, silver’s failure to hold the $58.50 support level — which had acted as a floor since mid-July — triggered algorithmic selling that accelerated the move toward $57.58. Traders are now watching the $56.80 zone, a prior consolidation shelf from late June, as the next meaningful floor. A close below that level could invite a test of $55.00.
TSX and TSX-V Names in Focus
The selloff is rippling through Canadian silver producers and royalty companies listed on the TSX. First Majestic Silver (TSX: AG) fell 3.4% to C$28.62 in morning trading, underperforming even the broader silver move as the stock carries elevated operating leverage to spot prices at its San Dimas and Santa Elena mines. Endeavour Silver (TSX: EDR) declined 2.9% to C$11.44; the company’s Terronera mine in Jalisco, Mexico — which poured first silver in Q1 2026 — is now being watched closely given its higher all-in sustaining cost profile near US$22/oz AgEq. MAG Silver (TSX: MAG), widely regarded as a higher-quality name in the space, held up comparatively better, off 1.6% to C$34.10, supported by its low-cost Juanicipio operation where AISC runs near US$8/oz silver net of gold by-product credits.
Analyst Views
Despite today’s weakness, the medium-term bull case for silver remains intact among several research desks. Scotiabank raised its 12-month silver price target to US$64/oz in a July 18 note, citing structural deficits driven by solar photovoltaic demand and constrained mine supply growth. National Bank Financial carries a C$38.00 target on MAG Silver (Outperform), arguing the stock trades at an unjustified discount to net asset value even at spot. Meanwhile, TD Securities recently reiterated a C$33.00 target on Endeavour Silver (Hold), flagging Terronera ramp-up execution as the key swing factor for the second half of 2026.
Gold, by contrast, was nearly flat at US$4,096.10/oz (-0.10%), illustrating how today’s move is a silver-specific, industrially driven event rather than a broad precious metals liquidation. Investors holding silver equities through this dip will be watching Friday’s U.S. non-farm payrolls print and next week’s Chinese Caixin services PMI as the next macro signposts.
