Silver’s Still in a Tight Stroll, but with a Bit of Spice
On Tuesday, silver didn’t do much fancy footwork—kept its price hovering roughly at $38 an ounce. Although the market stayed in that narrow corridor, upbeat speculation and steady investment flows kept the metal buoyant. The quiet climax? A faint whisper of easing geopolitical jitters and that stubborn “sticky” inflation still nudging the price lower.
Geopolitical Dance: President Trump & the European Squad
- Trump sat down with European heads and promises a bridge to a sound‑wave between Vladimir Putin and Zelensky.
- While nothing concrete has popped up yet, the mere fact of talks could shave off some safe‑haven demand—watch that silver price squeeze!
Federal Reserve on the Radar
The markets are buzzing ahead of the Jackson Hole symposium. They’re picking up the mixed signals from the Fed. Producer prices in the U.S. jumped higher than expected, keeping inflation hanging over the heads of traders.
For the next moves: analysts now price in a 25‑basis‑point cut in September and another in December, pulling back from the earlier plan of three rate trims. These cuts could pressure silver further and give a boost to U.S. Treasury yields.
Position‑Pals: COT & Silver‑Backed ETPs
The latest Commitments‑of‑Traders (COT) report paints a bullish picture. Non‑commercial traders are riding the wave with net long stays—talking confidence in a silver upside.
Meanwhile, silver‑backed Exchange‑Traded Products (ETPs) poured in at 95 million ounces in the first half of the year. That pushes total holdings to a cool 1.13 billion ounces—a safety net that could help hold the price steady.
Bottom Line
Silver is still stuck in a tight, almost lull‑bored spot. If the geopolitical story moves forward—or even slows—plus the Fed’s rate plays, keep an eye on silver’s next move. The market’s mix of hopeful speculation and cautious caution is the only thing standing between a calm beat and a sudden swing!
