Silver plunges 3.1% to fall below $86, as dollar rebounds and inflation concerns weigh on mining stocks; ETFs drop 4% across the board

⑴ Spot silver faced a sell-off on Wednesday, with prices dropping 3.1% to $85.67 per ounce. The main sources of market pressure were twofold: a rebound in the US dollar exchange rate and persistent inflation concerns, which reinforced expectations for interest rates to remain high, thereby undermining the appeal of the non-yielding asset silver. ⑵ The sharp decline in silver prices directly dragged down the share prices of mining companies. US miner Hecla fell 5.6%, while Coeur dropped about 7%. Canadian peers also came under collective pressure, with Endeavour Silver and Silvercorp Metals falling approximately 6.2% and 7%, respectively. ⑶ Exchange-traded products tracking silver also declined in tandem. Abrdn Physical Silver Shares ETF and iShares Silver Trust both fell around 4%. Overall, under the dual pressure of a strong US dollar and high interest rate expectations, the silver market is undergoing a comprehensive correction.