Silver traded within a tight range on Tuesday, holding near USD 38 per ounce, supported by robust speculative positioning and resilient investment flows, but capped by signs of easing geopolitical risk and sticky inflation data.
On the geopolitical front, US President Donald Trump held talks with European leaders and confirmed ongoing efforts with Russian President Vladimir Putin to arrange a direct meeting with Ukraine’s Volodymyr Zelensky.
Although no breakthrough has been reached, progress toward conflict resolution could reduce safe-haven demand and weigh on silver prices.
Monetary policy remains in focus ahead of the Federal Reserve’s annual Jackson Hole symposium, with markets digesting mixed signals.
Inflationary pressures persist as US producer prices rose far above expectations. Markets now price in a 25 bp cut in September and another in December, down from three cuts previously. This could further put pressure on silver and benefit US treasury yields.
From a positioning perspective, the latest COT painted a bullish scenario for the commodity. The report showed non-commercial traders holding net long positions, highlighting conviction in silver’s upside potential. Meanwhile, silver-backed ETPs recorded net inflows of 95 million ounces in H1, pushing total holdings to 1.13 billion ounces, potentially supporting the metal.
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