The sharp price moves seen in precious metals last Friday may look like panic at first glance. However, the underlying dynamic is much clearer: position cleanup and rebalancing. In other words, rather than a “the story is over” type of breakdown, the market is going through a classic shake-out where unhealthy positioning is being cleared. While weak hands are leaving the market, the remaining positions are forming a stronger and more balanced structure. The excess built during the previous rally has been unwound, and prices are now trying to build a healthier base. Such resets are usually not the end of a trend, but a condition for a more sustainable one. The key question is whether investors will read this reset as a warning sign or as the groundwork for a healthier trend. Overall, we see that prices have entered a recovery phase after the sharp sell-off.

Silver is currently trading around 89,1 $/oz. These levels still stand out as areas where medium-term buying interest remains intact. As both an industrial metal and a monetary asset, silver tends to be sold the hardest during periods of uncertainty, but also reacts the fastest when market sentiment improves. The recent move followed this familiar pattern. The price decline was mainly driven by the unwinding of long positions in the futures market. Physical demand, however, has not deteriorated. On the contrary, growing data center investment driven by AI and the rapid expansion in solar capacity continue to provide structural support for silver on the industrial side. In addition, limited global silver inventories and the recent difficulty of supply keeping up with demand maintain the upside asymmetry in pricing. Within this framework, the potential for upside momentum to re-emerge after pullbacks remains high.

On the gold side, pullbacks have been more limited compared to silver. Gold is currently trying to stabilize around 5,065 $/oz. Central bank buying and reserve diversification continue to support gold’s medium- to long-term structural backdrop, while renewed geopolitical risks along the Iran–U.S. axis keep safe-haven demand alive. Rising uncertainty around the Fed leadership adds to risk premiums in the dollar and interest rate outlook, further supporting gold demand.In short, despite short-term volatility, gold continues to serve as portfolio insurance in a period of elevated macro uncertainty.

Platinum is trading around 2,316 $/oz. With supply largely dependent on South Africa, along with industrial demand and low inventories, prices continue to find medium-term support. Palladium is hovering around 1,799 $/oz. While fundamental pressures remain, the bulk of the oversold conditions appear to have been cleared. Short-term volatility may stay elevated.

During the sell-off, the Gold/Silver ratio falling to around 56.8 highlights silver’s relative outperformance versus gold. This move confirms that silver’s medium- to long-term outlook remains intact and that the recent move was more of a short-term price correction.

Now it is time to watch how the market can hold this new balance…