Shares of the iShares Silver Trust (SLV) surged 5.02% during Wednesday’s trading session, mirroring a powerful rally in spot silver prices. The move came as a broad wave of buying swept through precious metals, pushing spot silver up 3% to $61.30 per ounce and lifting related ETFs.

Analysts attributed the gains to a combination of a potentially more dovish U.S. Federal Reserve policy outlook and rising U.S. fiscal deficits driven by increased military spending. The bullish case for precious metals was further strengthened after the Bank of Korea announced it would resume gold purchases for the first time since 2013, a move that boosted sentiment across the entire precious metals complex and spilled over into silver.

Technical factors also played a role, with silver breaking above the key $61 level and triggering follow-through buying. As an exchange-traded fund that physically holds silver, SLV directly benefited from the upward momentum in the underlying metal, reflecting the market’s renewed appetite for hard assets amid shifting macro conditions.