iShares Silver Trust (SLV) is taking a breather Thursday, pulling back from recent record highs as traders cash in on one of the year's most dramatic precious metals rallies. After rocketing to fresh all-time peaks earlier this week, silver is facing some natural resistance as investors lock in gains.

When Politics Meets Precious Metals

Silver's surge to record territory wasn't random. Two major concerns converged to send investors scrambling toward safe-haven assets.

First, Fed Chair Jerome Powell dropped a bombshell Sunday night, revealing that the Federal Reserve had received grand jury subpoenas related to his testimony about the central bank's $2.5 billion headquarters renovation. The subpoenas raised immediate worries about political interference creeping into monetary policy, exactly the kind of institutional uncertainty that sends investors running toward gold and silver.

Then there's the Middle East. President Donald Trump warned of potential action against Iran following reports of thousands killed in a crackdown on anti-government protests. Geopolitical instability tends to be rocket fuel for precious metals, and this situation was no exception.

The combination pushed silver sharply higher. Thursday's pullback looks like classic profit-taking after a powerful move.

What The Charts Are Saying

The technical picture for iShares Silver Trust remains impressively bullish, even with Thursday's dip. The fund is trading 21.6% above its 20-day simple moving average, 46.1% above its 50-day, and a staggering 104.8% above its 200-day. Those numbers suggest traders should be watching for continuation patterns rather than reversal signals.

The RSI currently sits at 76.65, firmly in overbought territory. That's often a warning sign that a pullback or consolidation period may be coming, so caution is warranted even as momentum remains strong.

The MACD is above its signal line, confirming bullish momentum. The upward trend looks intact, though the overbought RSI reading suggests traders shouldn't chase aggressively here.

Without clearly defined support or resistance levels, price action gets trickier to predict. If SLV approaches its recent high of $84.78, selling pressure could emerge. A deeper drop would force the market to establish new support levels.

The bigger picture remains remarkable: iShares Silver Trust has delivered a 196.53% return over the past 12 months, capitalizing on sustained bullish sentiment in the silver market.

Price Action: iShares Silver Trust shares were down 1.69% at $83.16 at the time of publication Thursday, trading near the 52-week high of $84.78.