Gold and silver rebound after technical adjustments as long-term fundamentals strengthen

February analysis reveals a clear pattern in the precious metals markets: the strong rebound in gold and silver prices following massive liquidations is primarily due to portfolio rebalancing and temporary market impulses, not a structural trend change. According to BlockBeats, although technical indicators show extreme bullish levels and highly concentrated positions, the fundamental drivers supporting the market remain solid.

Position adjustments generate volatile recoveries

Deutsche Bank analysts note that the recent decline in prices has been deeper than superficial factors suggest. However, the ability of investors—both government and institutional as well as retail—to reallocate capital remains robust. This context differs substantially from the prolonged weakness periods that characterized precious metals in decades past, such as the 1980s or 2013.

Structural demand persists amid uncertain geopolitical context

Barclays highlights that, amid escalating political risks and the search for reserve diversification, gold maintains fundamentally stable demand. In the case of silver, its smaller and more volatile market—marked by high retail participation—finds new support in its industrial properties. Experts emphasize that silver requirements in key sectors such as solar energy, data center infrastructure, and artificial intelligence systems continue to expand at an accelerated pace.

Supply-demand gap favors bullish scenario

The silver market projection shows a growing imbalance: in the coming years, the rate of supply increase will lag behind the acceleration of industrial demand. This expected supply-demand divergence remains in effect, providing the fundamental basis to sustain the bullish silver market beyond ongoing technical adjustments in the short term.