iShares Silver Trust (NYSE:SLV) shares are dipping on Thursday, pulling back from recent record gains as investors take profits following silver’s surge.
Political Tensions Fuel Precious Metals
Silver surged to fresh all‑time highs earlier this week, fueled by rising political tension around Federal Reserve Chair Jerome Powell and growing instability in the Middle East.
Powell disclosed in a video Sunday night that the Fed had received grand jury subpoenas tied to his testimony about the central bank's $2.5 billion headquarters renovation, which sparked worries about political pressure creeping into monetary policy. That uncertainty pushed investors toward safe‑haven assets like silver.
Geopolitical tensions also grew, with President Donald Trump warning of possible action against Iran following reports of thousands killed in a crackdown on anti‑government protests.
The overlapping concerns sent precious metals sharply higher. Thursday’s pullback may be tied to profit‑taking after the rally.
The Bullish Indicators Behind Silver’s Surge
iShares Silver Trust is currently trading well above its key moving averages, indicating strong bullish momentum. The stock’s position — trading 21.6% above its 20-day SMA, 46.1% above its 50-day SMA and a remarkable 104.8% above its 200-day SMA — suggests that traders should be looking for continuation patterns rather than reversal signals.
The RSI is currently at 76.65, which puts it in overbought territory. This level often indicates that the stock may be due for a pullback, so traders should watch for signs of weakness or consolidation as the momentum may be reaching its peak.
MACD is above its signal line, signaling bullish momentum for iShares Silver Trust’s stock. This suggests that the upward trend remains strong, but traders should remain cautious given the overbought RSI.
Currently, there are no defined support or resistance levels, which makes it tricky for traders to gauge potential price action. If the stock approaches its recent high of $84.78, it could face selling pressure, while a drop could lead to a search for new support levels.
iShares Silver Trust’s stock has shown a strong upward trend over the past year, with a remarkable 12-month performance of 196.53%. This impressive return highlights the stock’s ability to capitalize on bullish sentiment in the silver market.
SLV Price Action: iShares Silver shares were down 1.69% at $83.16 at the time of publication on Thursday. The stock is trading near its 52-week high of $84.78, according to Benzinga Pro.
Image: Shutterstock
