Shares Silver Trust (SLV) bounced back in the past week as the silver ETF rose by 3.2%. The latest news from the FOMC, the progress in the U.S dollar and changes in the treasuries market could provide some indication about the recent shift in SLV. Based on these developments, what is next for SLV?
Despite the fall in SLV in the past few months, the ETF’s silver holdings have picked up to their highest level this year.
This rise in holdings suggests, more investors have entered this ETF and used their weakness in the silver market to stock up on SLV.
The rally in the US dollar against leading currencies in the past few weeks contributed to the weakness of SLV and other silver related contracts. Thus, the latest news from the IMF regarding its revised down global economic outlook and the release of the minutes of the last FOMC meeting paved the way for the huge selloffs of U.S dollar. In the past week, USD fell by 1.9% against the Yen and 0.9% against the Euro. This shift provided some headwind for SLV’s latest rally.
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