Gold and silver prices have entered a correction phase following a period of record-breaking rallies. Gold, which had surged over 50% year-on-year, is now posting weekly losses as investors begin to lock in profits and reassess the outlook for precious metals.
Analysts attribute the recent pullback to a combination of profit-taking, a stronger U.S. dollar, and easing geopolitical tensions, which have reduced demand for safe-haven assets. Despite the short-term decline, many market strategists believe the broader bullish trend in gold remains intact, supported by expectations of monetary easing by major central banks and ongoing central bank gold purchases, particularly in emerging economies.
Silver has mirrored gold’s movement, dipping after hitting multi-year highs earlier this month. The metal remains supported by industrial demand, especially from the green energy and electronics sectors, where silver plays a key role in solar panel and battery production.
Market observers note that both metals could see renewed upward momentum if inflationary pressures persist or if the U.S. Federal Reserve signals an earlier-than-expected rate cut cycle.
