SLV silver ETF hit a fresh 14-year high on Tuesday as a weaker US dollar and a decline in Treasury yields bolster precious metals’ rallying. Investors have already priced in a September Fed rate cut of a quarter basis points. However, they are still seeking clues on the number of subsequent cuts before the year ends.
SLV Rides Fed Rate Cut Wave as US Dollar Plunges
SLV silver ETF has reached a new 14-year high as heightened expectations of a dovish Fed bolster non-yielding precious metals. In addition to the priced-in September rate cut, concerns over the health of the US economy and independence of the country’s central bank have been weighing on the US dollar while fueling silver price rallying.
On Tuesday, the dollar index extended its previous losses to trade at a 10-week low at $96.91 The index, which tracks the value of the greenback against a basket of six major currencies, has been under selling pressure since the start of 2025; dropping by over 10% year-to-date. Indeed, it has been trading below the once steady support zone of $100 since late May with the bulls lacking enough momentum to break past that level at the start of August.
Unlike a year ago when the Fed began easing its monetary policy, the US dollar has taken a different trajectory from US stocks and bonds. In addition to the expectations of a dovish Fed, concerns over the central bank’s independence may have the greenback slide further.
Silver price and derivatives like the SLV silver ETF are set to continue benefiting from the negative outlook as investors choose to remain on the sidelines ahead of Fed’s interest rate decision. A weaker greenback tends to make dollar-priced assets like precious metals less expensive for buyers holding foreign currencies.
SLV ETF Technical Analysis
SLV silver ETF rose to a fresh 14-year high of $39.02 earlier on Tuesday before pulling back to $38.55 as at the time of writing. The derivative has risen by close to 45% year-to-date, hitting multi-year highs on several occasions.
Even with the pullback, it remains within the bullish channel that has been in place since early April when tariff-related concerns pushed the ETF to its lowest level this year. With the steady bullish momentum, this pattern will likely define the asset’s movements in the ensuing sessions.
Notably, the bulls are striving to unlock a fresh 14-year high at $40. However, the SLV silver ETF record a corrective pullback before rallying further towards the next target. Indeed, it has been in the overbought territory since late last week when it broke past the crucial resistance zone of $38. At the time of writing, it was at an RSI of 73.
In line with these technical indicators, the range between Tuesday’s high of $39.02 and the resistance-turn-support zone of $37.50 will be worth watching in the near term. Even with a further pullback, it will likely hold steady above the 25-day EMA at $36.55. On the upside, further rallying will have the bulls eyeing the upper level of $39.50.
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