The iShares Silver Trust (SLV) experienced a significant 24-hour plunge of 5.53% during Thursday's trading session, reflecting intense selling pressure in the silver market.
The sharp decline was driven by multiple bearish factors converging simultaneously. A primary catalyst was the nomination of Kevin Warsh as the next Federal Reserve Chair, which markets interpreted as a hawkish signal that could lead to tighter monetary policy and reduced dollar liquidity. This "Warsh Shock" triggered a broad reassessment of non-yielding assets like silver.
Structural forces exacerbated the sell-off, with consecutive margin requirement hikes by the CME Group forcing leveraged speculative positions to liquidate, creating a cascade of selling pressure. Additionally, fading geopolitical risk premiums—stemming from progress in Russia-Ukraine prisoner exchanges and U.S.-Iran negotiations—reduced safe-haven demand. The decline was further fueled by weaker-than-expected U.S. economic data, a stronger U.S. dollar, and a technical breakdown as silver failed to reclaim key support levels after its historic rally.
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