For investors seeking momentum, iShares Silver Trust SLV is probably on the radar. The fund just hit a 52-week high and is up 48.97% from its 52-week low price of $25.27/share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SLV in Focus
This ETF is designed to track the spot price of silver bullion. The product charges 50 bps in annual fees (See: All Precious Metals ETFs).
Why the Move?
Silver has been an area to watch lately, given the rise in volatility and increased inflation concerns. Tariff-driven uncertainty, a weak consumer sentiment and persistent geopolitical and political issues have provided strong tailwinds for the metal.
Additionally, increasing expectations of interest rate cuts starting in September bode well for the precious metal. The greenback's value tends to move inversely with interest rate adjustments by the Fed and a weakening greenback is also a favorable factor for silver.
More Gains Ahead?
Currently, SLV has a Zacks ETF Rank #3 (Hold) with a High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 49.79 (as per Barchart.com), which gives cues of a further rally.
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iShares Silver Trust (SLV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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