Analysis: The core logic of the gold and silver bull market remains unchanged, but the positions are overly crowded in the short term.

BlockBeats News, February 3 — Several institutions have pointed out that the rapid rebound in gold and silver following a historic sell-off is more due to position adjustments and short-term catalytic factors rather than a trend reversal. Although technical indicators show overbought conditions and crowded positions, the medium- to long-term drivers supporting the gold and silver bull markets remain solid.

Deutsche Bank believes that the recent sharp decline in gold and silver significantly exceeds the importance of apparent negative news. The allocation willingness of official, institutional, and individual investors has not substantially worsened, and the current environment is fundamentally different from the long-term weakening phases of precious metals in the 1980s or 2013.

Barclays also pointed out that, amid geopolitical uncertainties, rising policy risks, and the diversification of reserve assets, demand for gold remains resilient. As for silver, although its volatility is more intense due to its smaller market size and higher retail participation, its industrial attributes are becoming an important support.

Analysts emphasize that the demand for silver in solar energy, data centers, and AI infrastructure continues to grow, and over the next few years, supply growth is unlikely to keep pace with demand expansion. The supply-demand gap outlook remains unchanged, and the foundation for a silver bull market is still in place.