An Extended Silver Rally Is Unsustainable

The weekly Commitment of Traders data from the Commodity Futures Trading Commission for the week ended April 11 had indicated that large speculators and traders, known as non-commercials, representing hedge funds, technical traders and other portfolio managers, continued to boost their bullish net positions in the silver futures markets for a third consecutive week.

Non-commercial Comex silver futures contracts totaled a net position of 105,515, representing a weekly gain of 4,133 contracts from the previous week’s total. This number was significant because it brought the net position to the most bullish speculative level on record and marked the second consecutive week with contracts above more than the 100,000 net level. Over those three weeks, silver speculative positions have grown by 26,403 net contracts.