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%.
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