Exchange traded funds that invest in silver rallied nearly 4% on Wednesday, raising questions over whether the metal can recover after its recent drubbing on higher margin requirements for futures contracts.

Silver has finally stabilized “as Comex futures speculative futures positions are cleared out,” wrote Daniel Willis and Nicholas Brooks in a research note from ETF Securities. The firm manages ETFS Physical Silver Shares (NYSEArca: SIVR) and other ETFs. The silver ETF rose almost 4% on Wednesday.

The analysts said global silver ETF flows have also stabilized “as much of the forth was taken out of the market,” according to the report. [Investors Pull Money From Silver, Gold ETFs]

“Barring further Comex margin hikes, the outlook for silver will likely be highly dependent on investor views of the durability of the economic recovery,” they wrote.

Gold ETFs were also trading higher Wednesday. SPDR Gold Shares (NYSEArca: GLD) added 1%.

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