iShares Silver Trust (SLV) plunged 5.07% during the night session, reflecting a sharp downturn in the silver market.

The decline was driven by multiple headwinds. India's sudden increase in import tariffs on gold and silver from 6% to 15% aims to curb precious metal imports and support foreign exchange reserves, dampening physical demand. Concurrently, a rebounding U.S. dollar and rising longer-dated Treasury yields have increased the opportunity cost of holding non-yielding assets like silver.

Adding to the pressure, UBS revised its silver market outlook, significantly narrowing the projected supply deficit for 2026 from approximately 300 million ounces to 60-70 million ounces. The bank cited weaker investment demand, softer industrial consumption, and increased mine supply, and subsequently lowered its silver price targets across multiple time horizons. This confluence of factors triggered a profit-taking sell-off following a recent rapid rally in silver prices.