The iShares Silver Trust (SLV) experienced a significant surge of 5.07% during the night session, marking a notable rebound for the silver-backed exchange-traded fund.
The rally in silver prices, and consequently SLV, is attributed to a retreat in the U.S. dollar, which provided short-term support for dollar-denominated precious metals. Market analysts note that the move is part of a recovery following a steep multi-session sell-off, with the price action being driven by highly speculative and leveraged positioning, causing the metal to exhibit volatility more commonly associated with risk assets.
The price movement occurs against a backdrop of complex market mechanics in the silver sector, where factors such as margin requirements and the structural advantages of large institutional players can significantly influence price volatility and liquidity during periods of market stress.
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