Silver Hits $70 as India Curbs Tighten Bullion Supply

Silver returned to the center of commodities coverage after Reuters placed spot silver at $70.09 per ounce during a broader precious-metals move.

The immediate catalyst is not one single factor.

It is the combination of a weaker dollar, India’s new import restrictions and a long-running physical supply deficit that has kept the silver market unusually tight.

Reuters reported that spot silver was at $70.09 per ounce as gold and other precious metals gained support from a weaker dollar and changing expectations around U.S. interest rates.

The move came before the Federal Reserve’s June 16-17 policy meeting, where investors are watching Chair Kevin Warsh’s first press conference for signals on rates.

India’s Import Curbs Became The Immediate Supply Trigger

The sharper market concern came from India.

Reuters separately reported that India’s silver imports fell 87% year-on-year in May to $75.57 million, the lowest level in more than three years.

In volume terms, imports dropped 94% to 33 metric tons, the weakest reading since February 2023.

India matters because it meets more than 80% of its silver demand through overseas purchases.

When import access tightens in that market, local premiums and global pricing pressure can appear quickly.

The Indian government restricted imports of silver in nearly all forms in mid-May.

It later added silver grain and powder to the restricted category and required prior import authorization, according to Reuters.

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Silver Is Being Pulled Between Investment Demand And Industrial Use

Silver is not trading like a simple precious metal.

It also sits inside industrial supply chains for solar energy, electronics and other manufacturing uses.

The Silver Institute said the market is expected to face a sixth consecutive annual deficit in 2026.

Its February outlook pointed to a projected deficit of 67 million ounces.

That matters because silver demand is split across investment products, jewelry, silverware and industrial fabrication.

A market can cool in one segment and still stay tight if investors, ETFs or industrial buyers keep competing for available metal.

The Dollar And Fed Outlook Added A Macro Layer

The macro backdrop gave silver another push.

Reuters noted that the U.S. dollar index was lower, making dollar-priced metals less expensive for buyers using other currencies.

The same report said attention had shifted toward the Federal Reserve meeting this week.

That is important for silver because it does not pay yield.

When rate expectations ease or the dollar weakens, precious metals often become more attractive relative to cash and bonds.

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India’s Import Collapse Could Reshape Local Premiums

India’s restrictions are already changing local market behavior.

A Mumbai-based dealer told Reuters that demand remained present, but imports had become difficult and local premiums had started to rise.

India spent a record $12 billion on silver imports in the 2025/26 financial year ended March.

That compares with $4.8 billion a year earlier.

The country imports silver mainly from the United Arab Emirates, Britain and China.

Any slowdown in that flow can affect refiners, bullion dealers, jewelry networks and investors trying to source physical metal.

Why This Matters For Investors

Silver’s latest move is being watched because the metal now sits at the intersection of three different market stories.

It is a precious metal trade, an industrial input and an import-policy story at the same time.

That makes the price more sensitive to changes in currency markets, government restrictions and supply-chain availability.

It also makes the market harder to read than gold.

Gold is still primarily driven by rates, currencies and safe-haven positioning.

Silver must absorb those forces while also reacting to physical demand, solar use, ETF flows and local import rules.

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What Comes Next For Silver

The next major checkpoint is the Federal Reserve’s policy meeting.

If rate expectations shift again, the dollar and Treasury yields could become the next driver for silver.

The second checkpoint is India’s import regime.

If restrictions remain tight, traders will watch whether local premiums widen further and whether reduced buying from India changes global flows.

The third checkpoint is the Silver Institute’s updated supply-demand outlook.

If the deficit picture holds, silver may remain more sensitive to physical-market stress than usual.

Key Takeaways

• Reuters placed spot silver at $70.09 per ounce during the latest precious-metals move.

• India’s silver imports fell 87% year-on-year in May.

• Import volumes dropped 94% to 33 metric tons.

• India restricted silver imports in nearly all forms and later tightened rules further.

• The Silver Institute expects a sixth consecutive annual deficit in 2026.

• The Federal Reserve’s June meeting is the next major macro checkpoint for metals.

Sources

• Reuters — Gold drifts higher as Iran, US agree to halt war

• Reuters — India’s silver imports hit over three-year low after import curbs

• Silver Institute — Global silver investment to remain strong in 2026

• Investing.com / Reuters — Silver demand and deficit outlook

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