Managed Funds Sell $2.2 Billion in Silver Futures Over Three Weeks

Managed funds sold about $2.2 billion net of silver futures over three weeks, and their net long position fell to its lowest level in Goldman Sachs’ two-year data. Silver also declined as the dollar weakened, while losses in solar and data center-related stocks dampened expectations for industrial demand.

From Oct. 13-20, silver fell 2.6% as the dollar index slipped 0.5%. During the same period, U.S. solar shares dropped 4.7%, Chinese solar shares fell 1.6% and data center-related stocks lost 7.9%.

The three-month silver put/call skew reached as high as the 98th percentile of its one-year range, indicating increased risk aversion.

Potential catalysts for a shift include easing tensions around the Strait of Hormuz or worsening AI credit concerns that lead markets to price in fewer rate hikes.