Khaberni - Hedge fund managers and major speculators have scaled back their bets on rising silver prices to their lowest level in nearly two years, following the White House's decision not to impose tariffs on imports of critical metals, including silver.
US government data showed that net long positions fell by 15% in the week ending January 13, reaching 15,045 contracts, the lowest level in more than 22 months. This decrease indicates a retreat in bullish expectations for the precious metal among major speculators and hedge funds.
Previously, the threat of imposing tariffs on metals, including silver, had contributed to pushing up metal prices, as this measure was considered likely to increase speculative demand for silver. However, US President Donald Trump refrained from taking a step to impose comprehensive tariffs, opting to keep the door open for the possibility of applying them in the future, leading to investors adjusting their strategies and scaling back their bets on rising prices.
Silver prices fell on Friday, after the United States refrained from imposing tariffs, with the white metal dropping by up to 3.1% in Asian trading, following a slight decline in the previous session, while the price of gold decreased by 0.2%. However, silver prices remained up by more than 14% over the week, driven by an increase in demand for precious metals. The previous threat of tariff imposition was one of the main drivers for the sharp rise in silver and platinum prices, although President Donald Trump has postponed this move, without excluding the possibility of applying it in the future.
Despite the temporary decline, consulting firm «Metals Focus» confirms that the unpredictable nature of Trump's policies indicates that keeping metals within the United States to support short futures positions is likely to continue. It seems that suspending the tariffs is only a minor bump for silver, which has experienced a sharp upward surge, tripling its value over the past year, recording consecutive record levels, and has risen by more than a quarter since the beginning of the year, supported by a broader shift towards commodities as a safe haven amid inflation fears and declining investor confidence in currencies and government bonds.
