The iShares Silver Trust (SLV) plummeted 6.58% in pre-market trading on Thursday, tracking a sharp decline in spot silver prices, which fell below $90 per ounce. The ETF, which mirrors silver's performance, has been volatile amid recent swings in the precious metals market.
The drop was driven by a combination of profit-taking after silver's multi-day rally and U.S. President Donald Trump's indication of suspending tariffs on key mineral imports. This "tariff reprieve" cooled panic-driven bullish sentiment, while speculative funds unwound positions ahead of the Bloomberg Commodity Index rebalancing. Margin requirement changes by CME Group further pressured leveraged traders.
Silver's volatility has surged in recent weeks, with its 14-day Average True Range spiking. Analysts attribute the sell-off to technical factors like option hedging and short-covering, rather than fundamental supply-demand shifts. Gold, meanwhile, demonstrated relative stability, underscoring silver's sensitivity to speculative flows.
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