It is silver’s time to shine as the precious metal’s futures surged Friday, pushing the physically backed silver exchange traded fund over its long-term trend line.
The iShares Silver Trust (NYSEArca: SLV) rose 4.2% Friday and crossed over its 200-day simple moving average. SLV is up 5.5% year-to-date.
Technical analysts point to a strong three-month base forming in silver’s trend line after the 2013 sell-off tested the 2009-2010 resistance level, writes J.C. Parets for The Exchange.
Meanwhile, COMEX silver futures were up 4.9%, trading around $21.4 per ounce.
Silver is gaining support from investors seeking safety in precious metals amid the current market turmoil, reports Ira Iosebashvili for the Wall Street Journal. [Safety Bets Push Silver ETFs to Three-Week High]
Additionally, the weakening U.S. dollar has made dollar-denominated cheaper for foreign investors. The Dollar Index has delcined 1.4% since the end of January, according to Bloomberg data.