The iShares Silver Trust (SLV) experienced a sharp intraday plummet of 18.40% on Friday, reflecting a severe downturn in the silver-backed exchange-traded fund.
The decline was driven by market speculation that former Federal Reserve Governor Kevin Warsh would be nominated as the next Fed Chair, which strengthened the U.S. dollar and cooled the record-breaking rally in precious metals. A stronger dollar makes silver more expensive for holders of other currencies, reducing demand. Additionally, investors engaged in significant profit-taking after silver prices had surged to historic highs, creating a technically overbought market ripe for correction.
Analysts noted that the combination of shifting expectations for U.S. monetary policy and the unwinding of speculative positions triggered a broad sell-off across the precious metals complex, directly impacting silver ETFs like SLV.
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