For investors seeking momentum, iShares Silver Trust SLV is probably on the radar. The fund just hit a 52-week high and is up 123.59% from its 52-week low price of $26.19/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 prices have been climbing to fresh highs, supported by supply constraints and increasing use in solar power and electric vehicle applications. Often considered an industrial metal, silver plays a critical role in modern technology and clean energy solutions.
Additionally, expectations of interest rate cuts in 2026 bode well for the precious metal. The greenback's value tends to move inversely with interest rate adjustments by the Fed. A weakening greenback is also a favorable factor for silver. Any pullback in the greenback can spur global demand, pushing its price upward as it becomes more affordable for buyers holding other currencies.
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 124.42 (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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