Abrdn Silver ETF Trust (SIVR) experienced a sharp pre-market decline of 15.44% on Friday, reflecting a broad sell-off in silver-related assets.
The plunge aligns with a significant correction in precious metals, driven by profit-taking after silver's explosive 65% rally over the past month and heightened concerns over monetary policy. The sell-off was exacerbated by the imminent announcement of a new Federal Reserve Chair, with markets fearing the appointment of a hawkish candidate, which could lead to tighter policy and a stronger U.S. dollar, pressuring non-yielding assets. Additionally, the CME's recent increases in margin requirements have forced leveraged speculative positions to unwind, contributing to the downward pressure.
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