Silver Price Analysis: XAG/USD has the potential to recover – Commerzbank

Silver (XAG/USD) is climbing today in tandem with gold and is priced at over $22. Although silver is not in demand among speculators, economists at Commerzbank believe that the precious has the potential to recover now.

Speculative financial investors remain sceptical towards silver

“Whereas speculative financial investors are viewing gold positively again, they remain sceptical towards silver: the CFTC’s statistics show that positioning was net short for the first time in almost three years in the week to 24 May.” 

“Speculative financial investors have sold around 6,680 tons of silver via the futures market in the last six CFTC reporting weeks. This headwind clearly proved too much for silver, with the result that the price plunged by 13% during this period. We believe it has the potential to recover now, however.”