Silver Price Volatility Masks Bullish Signal in Futures Market

Silver's price has been volatile in recent weeks, with a jobs report, inflation reading, and other economic releases causing it to swing wildly.

The metal started September below $66 an ounce, but then rebounded after softer employment figures. However, the latest inflation reading reignited selling, sending prices down to just under $64 before steadying at $65.02 by Friday's close.

Beneath the surface, the futures market is showing a more bullish signal. According to CFTC data, net-long positions in COMEX silver climbed by 2,006 contracts to 14,176, even as prices wobbled.

This suggests that institutional players are leaning into the structural case for silver rather than trading the headlines. Citadel Securities' Scott Rubner recently laid out five arguments favoring gold and silver, including options signals and possible inflows from retail investors.

The fifth pillar, an expectation of looser Fed policy, is now under strain due to August's core inflation reading coming in hotter than anticipated. Higher rates raise the opportunity cost of holding non-yielding assets like silver, which goes a long way toward explaining its twitchy response to each new economic print.