Through the first half of this year, the iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR) were easily two this year’s best-performing commodities exchange traded products.
However, that has changed in dramatic fashion in recent weeks. Over the past month, SLV and SIVR are down about 7.6% and over the past quarter, the two silver ETFs have each tumbled more than 12%. 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.
The recent declines experienced by SLV and SIVR have the benchmark silver ETFs trading close to their 200-day moving averages, an area that is currently acting as support. Still, the technical outlook for these funds is currently tenuous.
“During trading last week, SLV broke through its uptrend line (near the 17 level). The momentum carried SLV as low as 16.24 before closing at 16.60,” according to See It Market.
Industrial demand is seen as a catalyst for SLV, SIVR and silver prices.