Wait for a Buying Opportunity in Silver ETFs

The iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR) are two of this year’s best-performing commodities exchange traded products, but the pair have retreated in recent days.

That could be good news for buyers looking to initiate stakes in silver ETFs, but some technical analysts believe silver prices, while not necessarily for significant amounts of more downside, could trade flat for awhile before moving higher again.

Related: Analysis: Silver ETFs Are Outshining Gold

Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction. The metal also maintained its momentum as the Federal Reserve lowered its interest rate outlook to only two hikes this year from a previously expected four rate hikes. Additionally, with the dovish Fed stance, the U.S. dollar weakened, which made USD-denominated silver cheaper for foreign buyers and a better store of value for U.S. investors.

“Silver still has a fully-loaded boat of large silver traders long in the futures market (record long), of which their net position may have been reduced this week, but we won’t likely find that out in today’s COT report given it is for the week ending on Tuesday. The real meaty move lower came on Wednesday. At any rate, crowded trades are not where we want to be, but if price action suggests the crowd is right, though, then they are, at least until they aren’t,” reports DailyFX.