Silver exchange traded funds lost 4% on Wednesday to fall below the 50-day simple moving average for the first time since January.

The iShares Silver Trust (NYSEArca: SLV) was losing ground for the third straight day. The metal ETF was up about 20% for the year heading into Wednesday’s action.

Yet since hitting a high in late February, the ETF “has edged lower and recent trading activity suggests interest in the metal is waning,” writes Steven M. Sears at Barron’s.

“The decline suggests investors who bought precious metals in anticipation of additional quantitative easing from the Federal Reserve have sold, or reduced positions, on news that no such program will be forthcoming,” he said Wednesday. [Gold ETFs Hit by Fed Outlook, Stronger Dollar]

The silver ETF holds nearly 10,000 metric tons of bullion and $10.5 billion of assets.

iShares Silver Trust

Full disclosure: Tom Lydon’s clients own SLV.

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