Silver’s Meteoric Rise Hits a Pause

The blistering rally that propelled silver to unprecedented heights has encountered a significant setback. Following a fresh record peak, the market experienced a sharp reversal, erasing a substantial portion of recent gains. The critical question now is how this pullback relates to the underlying fundamental drivers, which remain firmly in place.

Despite the recent price decline, the core structural factors supporting the silver market have not diminished. The powerful rally was built on several foundational pillars that continue to exert influence:

• Persistent Supply Deficit: Global mine production has consistently failed to keep pace with worldwide demand for an extended period. This structural shortfall maintains a persistently tight physical supply situation.
• Robust Industrial Demand: Silver is an indispensable raw material for pivotal future technologies. Its applications in solar panels, electric vehicles, and consumer electronics underpin demand irrespective of speculative or investment flows.
• Growing ETF Holdings: Holdings in silver-backed exchange-traded funds have seen notable increases recently. This points to sustained interest from both institutional and private investors seeking exposure to the metal.

This combination of physical scarcity and expanding use in high-tech applications laid the groundwork for the explosive upward move. Furthermore, a noticeable divergence emerged between the physically-driven markets in Asia and the more futures-oriented exchanges in the West—an early indicator of the strained conditions in the physical market.

A Sharp Retreat from Record Highs

Silver recently peaked at a new all-time high of $93.53 per troy ounce. This milestone extended a steep rally that saw the metal surge past the $90 threshold in a matter of weeks.

However, the record was swiftly followed by a pronounced correction. The price slid intraday to a low of $85.87, decisively breaking the previously intact upward trend. While the current price of approximately $87.90 remains well above levels seen in prior months, it signals a distinct breather following the preceding overextension. The metal now trades nearly 6% below its 52-week high of $93.19.

Should investors sell immediately? Or is it worth buying Silber Preis?

Technical indicators underscore the picture of an overheated market now taking a pause. The silver price currently trades about 28% above its 50-day moving average, while the 14-day Relative Strength Index (RSI) sits at 62, in the upper neutral zone. Given a 30-day gain of almost 39% and an increase exceeding 80% from its 52-week low, the current pullback is best understood as a reaction to prior excessive bullish momentum.

A Market in Search of New Direction

The severe sell-off from the record peak marks a clear inflection point. Having nearly doubled in less than two months, silver is now dominated by short-term downward pressure. Profit-taking following a frenzied buying phase has reversed the trend and ushered in a period of heightened uncertainty.

Key data points summarize the situation:
* New all-time high recorded at $93.53 per troy ounce
* Current price approximately $87.90, roughly 6% below the peak
* 30-day gain of nearly 39%
* Trading approximately 87% above its 52-week low
* Significant overextension relative to the 50-day moving average

In the near term, the market has clearly transitioned into a corrective phase. The decisive factor for the future trajectory will be whether the existing supply deficit and robust industrial demand are sufficient to stabilize prices at these elevated levels, or if profit-taking evolves into a more prolonged consolidation. For the coming trading sessions, the primary focus will be on whether silver can establish a base above recent lows or if further declines open the door for a deeper correction.