The iShares Silver Trust (SLV) experienced a sharp pre-market plunge of 5.04% on Monday, reflecting a significant downturn in silver prices during early trading hours.

This decline comes after silver prices had surged to multi-week highs due to strong safe-haven demand driven by escalating geopolitical tensions in the Middle East. The conflict between the U.S. and Iran has heightened market risk aversion, prompting investors to flock to precious metals like silver.

However, following the rapid price appreciation, silver entered a technical correction phase as traders took profits and adjusted positions. Market analysts noted that silver prices reached highs before encountering resistance, leading to the pullback observed in the pre-market session.