The iShares Silver Trust (SLV) saw a sharp decline of 5.04% intraday on Friday, tracking a broader correction in silver prices. The drop follows a recent rally in silver, which had pushed prices to record highs.
Key factors contributing to the decline include profit-taking by traders after silver's strong performance, as well as a drop in spot silver prices below $88 per ounce. Additionally, the Shanghai Silver main contract fell over 4%, further pressuring the silver market.
Analysts note that the silver market had become overextended, with the gold-to-silver ratio hitting its lowest level since 2012. This correction reflects a rebalancing of market sentiment after the recent surge.
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