The iShares Silver Trust (SLV) advanced sharply on February 27, rising 5.61% to $84.97 as investors rotated into precious metals amid heightened market volatility. The move comes during a session marked by equity market weakness, reinforcing silver’s role as both an industrial and defensive asset.

With the ETF trading near the upper end of its daily range between $82.36 and $85.27, market participants appear to be positioning for continued upside momentum in silver prices.

Strong Price Action and Elevated Participation

SLV opened at $83.25, already above the previous close of $80.45, and extended gains throughout the session. The 5.61% increase places the ETF among the day’s stronger-performing commodity-linked instruments.

Volume reached approximately 65.6 million shares, compared with an average volume of over 107 million. While slightly below average turnover, the magnitude of the price advance suggests conviction buying rather than thin liquidity-driven movement.

From a technical standpoint, SLV is pushing toward short-term resistance levels, with momentum indicators pointing to increased bullish sentiment. The ETF’s beta of 2.08 (5-year monthly) highlights its sensitivity to broader market fluctuations, amplifying both upside and downside swings.

Macro Drivers: Inflation, Yields, and Safe-Haven Demand

Silver’s rally coincides with rising inflation concerns and renewed volatility across U.S. equity markets. Following hotter-than-expected economic data this week, investors have reassessed interest rate trajectories, prompting demand for alternative stores of value.

Unlike gold, silver carries a dual identity: it serves as both a precious metal hedge and an industrial input in sectors such as renewable energy, electronics, and electric vehicles. This dual demand profile can magnify price movements during periods of economic uncertainty.

Additionally, if Treasury yields stabilize or retreat, non-yielding assets like silver often become more attractive. The interplay between real yields and inflation expectations will remain central to SLV’s trajectory in the coming sessions.

Fund Structure and Long-Term Context

The iShares Silver Trust manages net assets of approximately $51.48 billion and tracks the price performance of physical silver bullion. Its net asset value (NAV) stands near $78.29, while the ETF trades at $84.97, reflecting real-time market pricing.

With a year-to-date total return of 24.88%, SLV has outperformed many equity benchmarks in 2026. The 52-week range between $26.57 and $109.83 underscores the ETF’s volatility and leverage to underlying commodity trends.

The expense ratio of 0.50% remains competitive within the commodity ETF landscape, making it a commonly used vehicle for institutional and retail investors seeking liquid silver exposure without direct physical ownership.

Looking ahead, investors will closely monitor inflation indicators, Federal Reserve communications, and industrial demand signals from major economies. Sustained inflation uncertainty or renewed equity volatility could support further inflows into silver-linked ETFs. Conversely, stronger economic stabilization or rising real yields may temper the rally. The coming weeks will determine whether SLV’s surge represents a breakout phase or a tactical response to short-term market turbulence.