The iShares Silver Trust (SLV) experienced a significant decline of 5.14% during Wednesday's trading session. The exchange-traded fund, which tracks the price of silver, moved lower as macroeconomic concerns resurfaced in the market.
The downturn followed the release of the ADP employment report, which revealed a sharp deceleration in U.S. private-sector hiring. This disappointing labor market data underscored a broader cooling in employment demand, creating immediate downward pressure on precious metals including silver. The report complicated the Federal Reserve's assessment of wage pressures and inflation dynamics, influencing investor sentiment toward assets like silver.
While silver had shown initial strength earlier in the session, the weak employment figures triggered a retreat, pulling prices back from their intraday highs. The data's implications for future monetary policy decisions contributed to the selling pressure on silver-related investments like the iShares Silver Trust.
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