Silver Speculative Longs Edge Higher Amid Diverging Demand Forces

The U.S. CFTC Commitments of Traders (COT) report for silver shows a modest increase in net speculative positions to 25.9K as of February 7, 2026, up from 23.7K previously.

The move suggests continued bullish sentiment in the silver market, driven by industrial demand, safe-haven flows, and expectations of shifting Fed policy.

Investors should monitor how broader macroeconomic factors—such as dollar strength, geopolitical tensions, and Fed signaling—continue to shape silver's performance and speculative positioning.

While silver has surged over 150% in the past year, its volatility and dual role as both an industrial and investment asset remain key risks for investors.

The U.S. CFTC released updated positioning data on February 7, 2026, revealing that speculative net long positions in silver rose to 25.9K, up from 23.7K in the prior week. This small but notable increase reflects ongoing bullish activity in the silver market and could hint at a growing appetite for the metal amid shifting macroeconomic conditions and industrial demand.

Silver's positioning data is closely watched by investors and analysts for insight into speculative sentiment. In the most recent CFTC report, non-commercial (speculative) long positions in silver stood at 74,466 contracts, while short positions were at 18,543, indicating a net long of 55,923. These figures suggest a relatively balanced but leaning-long position overall. While the recent increase in net longs was modest, it could indicate a continuation of speculative interest in the metal, especially in light of recent price action and broader macroeconomic trends.

The shift in positioning for silver must be understood in the context of the broader market environment. Silver is not only a speculative asset but also a highly industrial metal, with over half of its demand coming from sectors like solar energy and electronics. This dual nature means that silver prices are influenced by both monetary factors (such as interest rates and dollar strength) and physical supply-demand imbalances. In recent months, silver has outperformed gold in some contexts, particularly in periods of high volatility, as it offers a more accessible and potentially more responsive hedge for retail and speculative investors.

Investors should remain cautious, however, as silver's price can be highly volatile due to its inelastic supply and exposure to both industrial and monetary forces. The recent CFTC positioning data may reflect increased optimism about silver's future trajectory, but it should not be taken as a guarantee of continued gains. The U.S. dollar remains a key determinant of silver prices, and any reversal in expectations about Fed policy—especially if rate cuts are anticipated—could shift market flows and positioning in a short time.

Given the structural and cyclical factors at play, silver is likely to remain a high-beta asset in 2026. Investors looking to position themselves in precious metals should weigh the balance between liquidity needs, storage capabilities, and exposure to both monetary and industrial demand. While gold offers deeper liquidity and tighter spreads, silver may provide more explosive upside in certain conditions—particularly if the energy transition accelerates and global demand for industrial metals rises.

Ultimately, the current shift in silver positioning is one of several signals in a complex and evolving market. As the Fed continues to signal its stance and global geopolitical tensions persist, the silver market will likely remain sensitive to both macroeconomic and technical developments. Retail investors and macro-aware traders should monitor these dynamics closely as they consider their positioning in the precious metals space.