****Silver selloff deepens to $62.41 lows then $72-75 rebound on short squeeze/COMEX crisis/Russia CB/RBI/Jane Street****
Key Questions
What caused the recent silver price selloff and rebound?
Silver prices dropped to $62.41 lows amid Fed hawkish dips, USD strength, and yields, but rebounded to $72-75.24 on a short squeeze, COMEX crisis with low registered inventory under 90M oz, and Day 1-3 deliveries. Factors like JPM shorts, Jane Street's 500x SLV position, and RBI collateral use supported the rally.
What is the current spot price range for silver?
Spot silver is trading in the $72-75.24 range, holding a May breakout above $72.64-74. The $72 level is key support amid ongoing volatility.
What is the significance of Jane Street's 500x SLV position?
Jane Street increased its SLV position by 500x, which is not normal and signals major bullish activity as silver hit $73. This move coincides with price surges and inventory pulls by dealers.
Why are silver dealers pulling inventory?
Dealers are pulling inventory amid COMEX pressures, low registered stocks under 90M oz, and Day 2 deliveries. This exacerbates supply tightness, contributing to the short squeeze.
What do technical indicators suggest for silver?
Silver faces resistance at $74.63-76.10 and a $75-77 wedge breakout, with RSI at 62 and MACD bullish. A breakout could target higher levels per TA analysis.
What are the long-term price forecasts for silver?
FY27 targets range from $85-100, with potential H2 squeeze to $80-135+ due to 800M oz 5-year deficits, solar demand, and SHFE dynamics. Francis Hunt notes a 9:1 ratio and 45-year pattern break.
How are central banks influencing silver prices?
RBI is using silver as collateral, while Russia CB and others add demand. China imported 790t in Q1, supporting structural deficits.
What role does the COMEX play in the current silver crisis?
COMEX shows 1181 Day1-3 deliveries and Day2 activity with inventory pulls by dealers and JPM shorts. Registered stocks below 90M oz heighten squeeze risks.
Spot $72-75.24 May breakout holds $72.64-74s amid Fed hawkish dips/USD/yields/COMEX 1181 Day1-3 Day2 deliv/<90M reg/JPM shorts/dealers pull inv/Jane Street 500x SLV/RBI collateral/China 790t Q1/800M oz 5yr deficits/solar/SHFE/H2 squeeze $80-135+/TA $74.63-76.10 resist/$75-77 wedge breakout/RSI62/MACD bull/Francis Hunt 9:1/45yr pattern break/FY27 $85-100/VC PMI/cycle Apr7-10.