Consider This Commodity ETF in January | Page 2 of 2 | ETF Trends

Looking ahead, silver and other precious metals may continue to face an uphill struggle as the Federal Reserve is expected to raise interest rates this month, which makes non-yielding assets like commodities less attractive. However, it is possible the Fed slows its pace of rate hikes next, potentially weighing on the dollar in the process. A weaker dollar could boost silver and other commodities.

“While Wall Street has suffered in December, SLV has shot higher, set for a monthly gain of 8.4% — its best month since January 2017,” reports Schaeffer’s. “The ETF is now staring up at its 200-day moving average, which hasn’t been toppled on a daily closing basis since June. For 2018, however, SLV is still on pace for a loss of nearly 10%. From its current perch around $14.44, another 4.59% gain would place it around $15.10 — back above the aforementioned trendline — to start February.”

SLV finished 2018 lower by almost 10%.

For more information on the silver market, visit our silver category.