Short-covering rally drives silver higher

With a 7.95% rally in the past week (to 16.30 23/08/2023), silver is on the cusp of reversing all the past month’s losses. Bearishness in the metal is reversing quickly. Net speculative positioning in silver futures fell 88% in the month to 15/08/20232, with positioning now 1 standard deviation below its 5-year average. However, we suspect that excessive shorts were being covered in the past week.