Silver’s COT Report Shows Funds Retreating on Both Sides

Silver’s speculative positioning barely changed last week. But the activity behind that small change tells us something new.

The latest CFTC futures-only report, covering positions as of October 6, shows Managed Money holding a net long position of 7,528 contracts, down just 86 from the previous week’s 7,614.

That is a sharp change in pace.

One week earlier, funds had reduced their net bullish exposure by 5,695 contracts. Long positions were being liquidated while short positions expanded aggressively.

This time, both sides moved in the same direction:

• Gross longs fell by 429 contracts.
• Gross shorts declined by 343 contracts.
• Net bullish exposure decreased by only 86 contracts.

That distinction changes how we interpret the latest silver positioning data.

During the previous reporting period, funds were simultaneously abandoning bullish positions and increasing bearish exposure. In the latest report, some of those bearish positions were closed too.

We are no longer looking at the same intensity of directional repositioning.

The broader futures market also contracted. Total open interest declined by 1,917 contracts to 105,130, indicating that the number of outstanding contracts continued to shrink.

There is another detail in the report: Managed Money spreading positions increased by 417 contracts, even as outright long and short exposure declined.

Spreading positions are reported separately from directional exposure. They do not contribute to the net-long figure, but they remind us that funds can change how they participate in the market without necessarily increasing their directional bets.

Our interpretation is that the aggressive speculative reset has slowed, but fresh bullish conviction has not yet returned.

Fewer shorts and fewer longs are not the same as a new wave of buyers entering silver.

The distinction will become clearer in subsequent reports. If gross longs begin recovering while shorts stabilize or decline, the evidence for renewed speculative demand would strengthen.

For now, the October 6 COT report shows a market where funds have become less aggressive on both sides.

That is a change in positioning behavior, not yet a confirmed change in trend.