The iShares Silver Trust (SLV) experienced a significant decline of 5.03% during the trading session, tracking a sharp drop in the underlying silver price.
The plunge in silver and other precious metals was primarily driven by a strengthening U.S. dollar, with the dollar index rising 0.6% intraday. A stronger dollar typically makes dollar-denominated commodities like silver more expensive for holders of other currencies, reducing demand and putting downward pressure on prices.
Market sentiment was also influenced by geopolitical tensions in the Middle East, which contributed to a surge in oil prices and further supported the dollar. The broader precious metals complex faced selling pressure, with spot gold and palladium also declining during the session as investors monitored the Federal Reserve's policy outlook amid ongoing inflation and economic uncertainty.
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