For investors seeking momentum, abrdn Physical Silver Shares ETF (SIVR Quick QuoteSIVR - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 52.24% from its 52-week low price of $19.83/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

SIVR in Focus

This ETF is designed to track the price of Silver Bullion. The product charges 30 bps in annual fees (see: all Precious Metals ETFs here).

Why the Move?

The strength of the greenback lessened last week on renewed Fed rate cut hopes. Since bullions are priced in the greenback, most bullions including silver rallied. Silver price has surged over 11% so far this month. Apart from its safe-haven recognition, silver is considered as an industrial metal. Most industrial metal prices are rising on concerns over supply disruptions.

Investors should note that if the Fed cuts rates by late 2024, industrial activities are likely to surge due to cheaper borrowing costs. The ECB is also expected to cut rates in June. These developments set the stage for a rally in industrial metals. Moreover, silver is a relatively better value play than gold.

More Gains Ahead?

SIVR might continue its strong performance in the near term, with a positive weighted alpha of 45.01, which gives cues of a further rally. Most analysts believe that more rallies are expected for silver, as it has just entered overbought territory on the RSI in daily timeframes.