The iShares Silver Trust (SLV) experienced a sharp pre-market decline of 5.91%, reflecting significant pressure on silver prices.

The plunge was driven by a confluence of bearish factors. India's sudden increase in import tariffs on gold and silver from 6% to 15% aims to curb precious metal imports, directly 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 substantial downward pressure, UBS strategists significantly revised their silver market outlook. The bank now projects the silver supply deficit for 2026 to narrow dramatically to approximately 60-70 million ounces, down from a prior estimate of 300 million ounces. UBS cited weaker investment demand, softer industrial consumption, and increased mine supply, and subsequently lowered its silver price targets across multiple time horizons. This reassessment of fundamentals triggered a wave of profit-taking following a recent rapid rally in the metal.