CFTC Still Finds No Evidence of Silver Futures Trading Manipulations

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The Division of Market Oversight (DMO) examined recent silver market price movement in relations to price movements of other metals; the relationship between the price of NYMEX silver futures and spot prices; and the relationship between the positions held by large short silver futures trades and silver futures prices.

The U.S. Commodity Futures Trading Commission's (CFTC) Division of Market Oversight announced this week that it has no new evidence of manipulation in the silver futures market from 2005-2007.

The Division of Market Oversight (DMO) examined recent silver market price movement in relations to price movements of other metals; the relationship between the price of NYMEX silver futures and spot prices; and the relationship between the positions held by large short silver futures trades and silver futures prices.

The CFTC report also revealed that NYMEX silver future prices tend to closely track the price of physical silver. However, the DMO asserted "there is no observable relationship between short-futures-trader concentration levels and silver prices."

DMO also found "silver cash and futures prices have risen dramatically between 2005 and 2007, with silver outperforming the gold, platinum and palladium markets, suggesting that silver future prices are not depressed relative to other metals prices."

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