Analysis: The core logic of the Gold and 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 is more due to position adjustments and short-term catalysts rather than a trend reversal. Despite the overheated technical outlook and crowded positioning, the medium- to long-term drivers supporting the gold and silver bull market remain solid.

Deutsche Bank believes that the recent gold and silver sell-off has significantly exceeded the apparent bearishness. The willingness of official, institutional, and individual investors to allocate has not materially deteriorated, and the current environment has fundamental differences from the gold and silver long-term weakness phase of the 1980s or 2013.

Barclays also pointed out that amid geopolitical uncertainties, rising policy risks, and a backdrop of reserve asset diversification, gold demand remains resilient. As for silver, although its volatility is more pronounced due to its small market size and high retail participation, its industrial properties are becoming an important support.

Analysts emphasized that silver continues to see growing demand in areas such as solar energy, data centers, and AI infrastructure. With the supply growth expected to lag behind demand expansion in the coming years, the expected supply-demand gap remains unchanged, supporting the silver bull market foundation.