In a remarkable turn of events, the iShares Silver ETF (SLV) has surged above a key resistance level as the price of silver skyrocketed to $30 for the first time in over 11 years. This surge comes on the heels of a more than 72% increase from its lowest level in 2022, making silver one of the best-performing metals in the industry.
The sharp increase in both silver and gold prices is largely attributed to the rising expectation that the Federal Reserve will begin cutting interest rates in the second half of the year. Leading indicators such as housing starts, building permits, retail sales, and consumer confidence have all pointed towards a slowing economy in the US.
Additionally, wage growth has slowed down, which could potentially help slow the inflation rate in the country. Recent data revealed that wage growth in April dropped to 3.9%, its lowest reading in over two years.
Furthermore, other precious and industrial metals have also seen a significant surge in prices. Gold has soared to over $3,900, approaching its all-time high, while copper has spiked to a record high due to heightened demand and limited supplies.
The surge in silver prices is further bolstered by the positive performance of the Chinese economy, with industrial production rising by 6.3% in April and the unemployment rate dropping to 5.0%.
In conclusion, the outlook for the SLV ETF remains optimistic, with the next level to watch being at $30. This surge in silver prices reflects the changing dynamics in the global economy and market conditions.
