The iShares Silver Trust (SLV) surged 5.07% in pre-market trading, tracking a sharp rise in the underlying metal's price. The move came amid a combination of macroeconomic factors and ongoing supply concerns in the silver market.
Spot silver prices advanced significantly, buoyed by a weaker U.S. dollar and falling Treasury yields. Investors were also positioning ahead of key U.S. employment data, seeking clues on the Federal Reserve's policy outlook. Additionally, renewed geopolitical tensions contributed to safe-haven demand for precious metals.
Fundamentally, the silver market continues to face a structural supply-demand imbalance, with analysts projecting a sixth consecutive annual deficit. This persistent tightness, particularly in physical inventories, provides underlying support for prices even as short-term factors drive volatility.