Silver prices fell by almost 6% on Friday, posting their largest decline in six months, as the precious metals retreated from a recent rally.
Silver recovered slightly at the end of the day, but was ready to close with a 4.75% drop.
The decline came amid easing concerns about U.S. credit quality and trade tensions between China and the United States. President Donald Trump's comments on Friday helped calm concerns about trade tensions, and positive results from regional banks stabilized the stock market and pushed bond yields higher. Rising interest rates usually put pressure on the prices of gold and silver, as these metals do not generate interest income.
Silver hit new all-time highs earlier this week, approaching the $54.48 per ounce mark on Friday before turning sharply around. Market analysts suggest that the rally may have developed too quickly.
In addition, the historical squeeze on the London silver market is showing signs of weakening, prompting some investors to lock in profits.
The broader precious metals sector also retreated as demand for defensive assets waned after this week's tumultuous rally.
Gold fell 2.4% on Friday to $4,220 after hitting a high of $4,380 an ounce earlier in the day.