Silver's holding firm around the $57.89 per ounce mark, hovering just shy of its all-time peak. The metal's strength comes as traders increasingly price in tighter supply conditions ahead.

Meanwhile, gold's been treading water, showing little movement in recent sessions. What's really catching attention though? The massive spike in speculative positioning.

Market participants are loading up on bets ahead of next week's Federal Reserve decision, where a rate cut seems almost certain at this point. Adding fuel to the rally: inventory levels at the Shanghai Futures Exchange have hit concerning lows, reinforcing the supply squeeze narrative that's been building for weeks.

The convergence of dovish Fed expectations and physical supply constraints is creating a pretty compelling setup for precious metals bulls right now.