Silver Tumbles 5.3% as Profit-Taking Hammers Precious Metals Complex

Silver collapsed 5.32% to $56.02 per ounce on Wednesday — the biggest single-day percentage decline across all major commodity markets today — as a wave of profit-taking and a firmer U.S. dollar punished the entire precious metals complex. At the USD/CAD rate of 1.4219, silver is currently trading at approximately $79.64 per ounce in Canadian dollar terms, down from roughly $84.12 at Tuesday’s close. Gold also retreated, falling 1.74% to $4,104.70/oz (approximately $5,836 CAD), but silver’s move was nearly three times as severe, underscoring the metal’s notorious volatility relative to its yellow counterpart.

What’s Driving the Selloff?

The catalyst appears to be a combination of macro headwinds and technically-driven liquidation. U.S. retail sales data released this morning came in hotter than expected, reigniting fears that the Federal Reserve may hold interest rates higher for longer into 2027. A stronger-than-anticipated consumer spending print pushed the U.S. dollar index sharply higher, making dollar-denominated commodities more expensive for foreign buyers. Silver, which carries both a monetary and industrial identity, is particularly sensitive to this dual pressure: when rate expectations tighten and industrial demand outlooks soften simultaneously, the metal tends to overshoot to the downside.

Technically, silver had been pressing against resistance near the $59–$60 range for the past two weeks — a level that capped gains in August. Today’s failure to break through that ceiling triggered a cascade of stop-loss orders, accelerating the selloff well past what macro fundamentals alone would justify. Volume in silver futures on the COMEX spiked to more than twice the 30-day average by midday, confirming the move was driven by forced liquidation rather than fundamental reassessment.

TSX and TSX-V Names in the Crosshairs

Canadian silver producers and royalty companies are absorbing significant pain today. First Majestic Silver (TSX: AG), one of the TSX’s largest primary silver producers, was off sharply in midday trading, consistent with the metal’s move. Endeavour Silver (TSX: EDR), which operates three producing mines in Mexico, also tracked lower, as did SilverCrest Metals (TSX: SIL), whose Las Chispas operation in Sonora generates outsized leverage to the silver price. On the royalty side, Wheaton Precious Metals (TSX: WPM) — which derives roughly 40% of its revenue from silver streams — posted a notable intraday decline, though its diversified gold exposure is providing partial insulation.

Analyst Calls: Still Bullish on the Dip?

Despite today’s flush, several sell-side desks remain constructive on silver’s medium-term trajectory. National Bank Financial reiterated its 12-month silver target of $65.00/oz USD last week, citing structural industrial demand from solar panel manufacturing and EV battery components as a secular tailwind. TD Securities has a standing price target on First Majestic Silver (AG) of $28.00 CAD per share, representing significant upside from current levels even after today’s move. Separately, Scotiabank’s metals desk flagged in a note published October 9 that any pullback toward the $54–$56/oz zone should be treated as a buying opportunity, pointing to tightening above-ground inventories at LBMA-approved vaults as a key support factor.

Retail investors watching TSX-listed silver names should note that today’s move, while painful, places spot silver squarely in the support range that several major desks flagged as a re-entry zone. The gold-to-silver ratio has now widened back above 73x — historically elevated — which typically precedes silver outperformance over the subsequent 6–12 months. The next key data point to watch is the U.S. Producer Price Index on Thursday morning, which could either validate or reverse today’s dollar strength narrative.