iShares Silver Trust (SLV) shares plummeted 5.02% during Tuesday's intraday trading session, marking a significant decline for the silver-focused exchange-traded fund.
The sharp drop was driven by a combination of a stronger U.S. dollar and rising U.S. Treasury yields, which typically reduce the attractiveness of non-yielding assets like silver. Concurrently, a "risk-on" sentiment in the equity market led investors to rotate capital away from defensive hedges, including precious metals, and toward sectors tied more closely to economic growth.
Further pressure stemmed from investor caution amid lingering uncertainty surrounding U.S.-Iran peace talks, which contributed to the dollar's firmness. This macroeconomic backdrop resulted in broad selling pressure on silver and related assets during the trading day.
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