Silver Rebound May Spark USLV Rally Amid Iran War Uncertainty
The silver market has been struggling, with the iShares Silver Trust (SLV) down 38% over the past six months. However, there are signs of a rebound in both gold and silver prices.
Risk-tolerant traders who believe silver will rally may want to consider the Direxion Daily Silver Bull 2X ETF (USLV), which attempts to deliver 2x of the daily returns of spot silver prices using SLV as a reference tool. USLV is not for the faint of heart and should not be held over extended timeframes.
A convincing advance in silver would require stronger follow-through above recent resistance, according to Invezz. The war in Iran has been a significant drag on the white metal, with investors using rallies to reduce exposure rather than chasing prices higher.
The war has also driven inflation to the upside, making high interest rates more likely and reducing the appeal of physical ownership of gold and silver. However, the Silver Institute forecasts a silver shortage of approximately 67 million ounces in 2026, which could provide medium- to long-term support for silver prices.