The iShares Silver Trust (SLV) plummeted 5.14% during pre-market trading on Monday. The sharp decline marks a significant reversal for the silver-backed ETF.
The move follows a substantial rally in silver prices driven by intense safe-haven demand, as escalating geopolitical tensions in the Middle East, including the U.S.-Israeli conflict with Iran, spurred investors toward precious metals. Silver prices had surged to multi-week highs amid the crisis.
Market analysis indicates the steep drop represents a technical correction, with traders taking profits and adjusting positions following the metal's rapid appreciation. After silver prices reached a high at the open, they entered this corrective phase, leading to the observed pullback in the iShares Silver Trust.