The jump in silver ETFs this week has lifted the metal to a crucial resistance line that has stopped multiple rallies over the past year.
The iShares Silver Trust (NYSEArca: SLV) is on track for a 9% weekly gain.
Silver ETFs are leading gold prices this week on the inflation trade and talk of further quantitative easing from central banks. [Silver ETFs Outperforming Gold in Precious Metals Rally]
SLV is facing a key falling resistance line that technical analysts are watching closely.
Also from a technical perspective, the silver ETF is testing its 200-day simple moving average. It has been stuck below this indicator since early March.
The rally in precious metal ETFs is being driven by the Federal Reserve minutes released this week “indicating a much more open tone to future easing and stimulation,” Futures magazine reports.
Spot silver is above $30 an ounce to the highest level since May.
iShares Silver Trust
Chart source: Kimble Charting Solutions
Full disclosure: Tom Lydon’s clients own SLV.