The iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR) nudged higher last week, bringing their year-to-date gains to about 13%. Even amid concerns that the Federal Reserve could hike interest rates in March, silver appears poised for more near-term upside.
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 Federal Reserve is targeting three interest rate hikes this year, which could white on precious metals, but some market observers believe there is upside to be had with the white metal.
“March silver futures prices closed nearer the session high and closed at a three-month high close today. The silver market bulls have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce,” according to Kitco.
Along with rallying with its golden counterpart as a safe store of wealth, silver bullion may be strengthening on increased industrial demand while global economies rebound.