Silvercorp Metals (AMEX:SVM) shares fell 5.4% to $10.73 in pre-open trading as silver prices declined during Monday’s session.
Spot silver fell nearly 5% as investors monitored higher crude oil prices, expectations for US interest rates, a stronger US dollar and rising Treasury yields.
The source material did not identify a company-specific announcement, earnings report or analyst downgrade associated with Monday’s decline in Silvercorp shares.
Silver Prices Fall as Markets Monitor Interest Rates
The decline in silver came as rising crude oil prices contributed to concerns about inflation and expectations that the Federal Reserve could raise interest rates again.
The US dollar also strengthened and Treasury yields moved higher during the session.
Investors are awaiting US economic data scheduled for release this week, including an inflation measure monitored by the Federal Reserve, for further information on the inflation and interest-rate outlook.
BMO Raises Silvercorp Price Target
Separately, BMO Capital recently increased its price target on Silvercorp Metals to C$21.00 from C$20.00 while maintaining an Outperform rating on the stock.
Silvercorp shares traded lower on Monday despite the earlier price-target increase.
Other silver-mining companies, including Pan American Silver and Endeavour Silver, were also exposed to the decline in spot silver prices.
Broader US Markets Trade Lower
The broader US equity market was also lower, with the S&P 500 down 0.4%, the Dow Jones Industrial Average declining 0.6% and the Nasdaq falling 0.6%.
Silvercorp shares were trading below their 52-week high of $15.77 but remained above their 52-week low of $5.95.
Monday’s premarket decline coincided with the nearly 5% fall in spot silver and broader moves in the dollar and US Treasury yields.
Silvercorp Metals stock price
