The iShares Silver Trust (SLV) saw a sharp decline of 5.58% during Thursday's intraday session, mirroring a broader downturn in silver prices. The drop was driven by a combination of annual commodity index rebalancing and a stronger U.S. dollar, which weighed heavily on the metal's appeal.
Analysts noted that the index rebalancing triggered mechanical, price-insensitive selling of silver futures, temporarily distorting market liquidity. Additionally, the dollar's strength made silver more expensive for overseas buyers, further pressuring prices. This dual impact led to significant declines across silver-related assets, including SLV.
Investor caution ahead of a key U.S. jobs report also contributed to the volatility, as traders assessed potential implications for Federal Reserve policy. The report could influence the trajectory of interest rates, adding another layer of uncertainty to silver's near-term outlook.
