The silver market experienced one of its most volatile trading weeks in recent months, characterized by a dramatic rejection from new highs followed by a determined recovery. The March 2026 Silver Futures (SI=F) contract closed Friday at 77.964, gaining +2.282 (+3.02%) on the day, effectively paring back losses from a mid-week sell-off. This price action unfolds against a backdrop of shifting global macroeconomic conditions, where commodities are increasingly viewed as critical hedges against persistent inflation and currency debasement.

Intra-Week Whiplash: The Rejection from 85.00

The defining feature of this week’s trading was the massive price swing observed between Wednesday and Thursday. Early in the week, bullish momentum propelled silver prices aggressively upward, testing the psychological and technical resistance near the 85.00 mark. However, the 5-day chart illustrates a sharp and sudden capitulation from these highs, with prices plummeting vertically to test support zones. This rapid descent suggests a wave of profit-taking or a “liquidation break,” where leveraged long positions were flushed out of the market. For investors, this serves as a stark reminder of the inherent volatility within the commodities market, particularly in contracts dated further out on the curve like March 2026.

Friday’s Recovery and Technical Support

Despite the severity of the mid-week drop, the market’s behavior on Friday indicates significant underlying demand. The contract opened at 75.175 and dipped to a daily low of 73.745, only to reverse course aggressively. The ability of the bulls to defend the 74.00-75.00 support zone is technically significant. By closing near the upper end of the day’s range (73.745 – 79.265), silver demonstrated a “V-shaped” recovery on the intraday timeframe. This resilience suggests that institutional buyers viewed the dip as a strategic entry point rather than a fundamental invalidation of the broader uptrend.

Volume and Market Participation

The trading volume of 55.59k contracts underscores the intensity of the current market environment. High volume during a recovery phase often validates the price move, implying that the rebound was supported by real capital commitment rather than low-liquidity drifts. For Israeli investors with exposure to global precious metals, this liquidity ensures that price discovery remains efficient, even during periods of stress. The wide spread between the Bid (77.100) and Ask (77.945) further highlights the active two-way flow as traders attempt to price in future inflation expectations and industrial demand forecasts for 2026.

Looking ahead, market participants should closely monitor whether silver can consolidate above the 78.00 level in the coming week. A sustained hold above this threshold would neutralize the bearish sentiment from the mid-week crash and potentially set the stage for a retest of the 80.00 resistance. Conversely, a failure to hold Friday’s gains could see prices re-testing the 74.00 support. The extreme volatility requires a cautious approach, with particular attention paid to the US dollar strength and global interest rate trajectories, which remain the primary drivers for precious metals.