Analysis: The core logic of the Gold-Silver Bull Market remains unchanged, but short-term positioning has become excessively crowded

BlockBeats News, February 3rd. Several institutions pointed out that the rapid rebound of gold and silver after experiencing a historic sell-off was more due to position adjustments and short-term catalysts rather than a trend reversal. Although the technical indicators show overheating and a crowded long position, the medium- to long-term drivers supporting the gold and silver bull market remain strong.

Deutsche Bank believes that the recent sharp decline in gold and silver prices has significantly exceeded the importance of surface-level bearish factors, and the willingness of official, institutional, and individual investors to allocate to these assets has not materially deteriorated. The current environment is fundamentally different from the long-term weakening stages of precious metals seen in the 1980s or 2013.

Barclays also noted that amid geopolitical uncertainty, rising policy risks, and the backdrop of reserve asset diversification, gold demand remains robust. As for silver, although its volatility is higher due to its smaller market size and greater retail participation, its industrial use is becoming an important support.

Analysts emphasized that silver continues to see growing demand in areas such as solar energy, data centers, and AI infrastructure, and the expected supply growth in the coming years is unlikely to match demand expansion. The expectation of a supply-demand gap remains unchanged, keeping the silver bull market thesis intact.