On February 3, several institutions highlighted that the rapid rebound in gold and silver prices following a historic sell-off is primarily due to position adjustments and short-term catalysts, rather than a trend reversal. According to BlockBeats, despite technical indicators showing overheating and crowded positions, the long-term drivers supporting the bull market for gold and silver remain strong.
Deutsche Bank noted that the recent decline in gold and silver prices has been more significant than the apparent negative factors suggest. The willingness of official, institutional, and individual investors to allocate resources has not substantially deteriorated. The current environment differs fundamentally from the prolonged weakness in precious metals seen in the 1980s or 2013.
Barclays also pointed out that in the context of geopolitical uncertainty, rising policy risks, and the diversification of reserve assets, the demand for gold remains resilient. For silver, although its market is smaller and more volatile due to high retail participation, its industrial attributes are becoming a crucial support.
Analysts emphasize that the demand for silver in sectors such as solar energy, data centers, and AI infrastructure continues to grow. Over the coming years, the rate of supply increase is unlikely to match the expansion in demand, and the expected supply-demand gap remains unchanged, maintaining the foundation for a silver bull market.