Author: Paul Ploumis
27 May 2015 Last updated at 03:53:28 GMT
(Kitco News) - According to some commodity analysts, the silver market is suffering Tuesday as investors are starting to see a crowded long side after Friday’s Commodity Futures Trading Commission (CFTC) Commitment of Traders’ report.
Early in the session, Comex July silver futures dropped below $17.00 an ounce. As of 12:53 p.m. EDT., silver traded at $16.735 an ounce, down almost 2% on the day.
Analysts at Bank of America Merrill Lynch, notes the data shows hedge funds and money managers bought silver futures at the strongest weekly pace since 1997, pushing the precious metal’s speculative net length to a three-month high.
Despite the strong short-term investor interest, BAML continue to expect to see weaker prices in the medium term for silver.
"While the YTD range trade can continue for a couple of more weeks, it should ultimately resolve lower for a test of the 12-year trend-line support at 13.33,” they say.
Courtesy: Kitco News