The iShares Silver Trust (SLV) plummeted 5.03% during intraday trading on Friday, extending a period of significant weakness for the silver-backed ETF.
The sharp decline comes as silver faces broad selling pressure within the precious metals complex. Market analysts attribute the weakness to the ongoing geopolitical conflict in the Middle East, which has sparked extreme volatility in oil prices. This oil price volatility is stoking fears of persistent inflationary pressures, leading investors to dial back their expectations for interest rate cuts from the U.S. Federal Reserve and other major central banks this year.
Furthermore, the sell-off appears driven by momentum traders and speculative funds unwinding positions following a massive rally in 2025. Silver is on track for a substantial weekly loss, reflecting a market correction as the "safe-haven premium" adjusts to the new geopolitical and macroeconomic reality shaped by the conflict.