Silver Outlook – Short Positions Rise as Silver Approaches Strong Resistance

Investors keep to see how the FOMC Chair Mr. Jerome Powell in his statement will forecast the progress of the economic recovery of the US and see if the inflation is held below 2% as expected. Although there are no doubts that the Fed Interest Rate decision will remain unchanged, the inflation data is what investors see as their pinpoint.

It is expected that Core Retail Sales and Retail Sales data as per February will slip heavily related to the January, which might ease the fear of hiking inflation. Although the inflation currently is slightly above the planned 2%, Mr. Powell in the FED’s January statement pointed out that the central bank will allow inflation to stay above the 2% for some time to stabilize the economy and keep the interest rate unchanged.

Silver once again outperformed Gold today by gains, Silver is up just over 1%, while Gold gained only 0.24%. According to the CFTC data as of March 9, there is a 20,000 spread between the overall net positions on Silver Futures, with an edge going to short positions. The update of the CFTC data on Silver will be released later tomorrow, worth checking it out.