Silver's short-term 3% correction: From a 6% surge to a pullback, is the long-term trend still intact?

Spot Silver today gained 3% intraday, trading at $79.27 per ounce. This figure seems stable, but when viewed in the context of the past week, it becomes quite interesting—just two days ago, silver was above $82, and in a matter of days, it surged over 6% before retracing to the current level. This is not a market reversal but a normal correction after profit-taking at high levels. More importantly, all of this is happening near historical highs for silver, and the long-term bull market logic remains intact.

Short-term Volatility vs Long-term Trend

Recent Price Movement Review

Since January 6, silver’s performance has been quite dramatic:

This rapid correction from high levels is normal. When the price surged from $75 to over $82, a gain of more than 9%, profit-taking is a natural market response. But the key point is: silver did not break below the bullish support at $75, indicating the foundation of the long-term upward trend remains.

Why does silver still have room to rise

Based on relevant market data, spot silver is less than 2% away from its all-time high. This is not a coincidence but a clear signal—the market is already preparing for a breakout above the historical high. Over the past year, silver has gained over 150%, leading the global asset return rankings. What supports this?

Three Major Factors Driving Silver’s Rise

Supply and Demand Fundamentals

• Global silver supply-demand gap around 8,000 tons
• Tightening export controls in China, supply constrained
• Growing industrial demand from emerging sectors like photovoltaics and AI
• These factors won’t disappear with short-term corrections

Macro Expectations

• Over 100 basis points of rate cut expectations from the Fed by 2026
• Rate cuts generally benefit precious metals
• Geopolitical risks persist, supporting safe-haven demand

Asset Allocation Shifts

The market is voting with real actions. When confidence in mainstream currencies (like the USD) wavers, capital instinctively flows into “hard currencies.” Silver, with its stronger industrial attributes and volatility, has become a front-runner. This aligns with the logic in the cryptocurrency market—both are hedging against uncertainty and seeking store-of-value options outside traditional systems.

Digitalization Opportunities: Precious Metals Enter the On-Chain Era

Notably, on January 7, WEEX platform launched Silver (XAG) spot and perpetual contracts. This means silver is no longer exclusive to traditional finance but is beginning to enter the crypto market. Users can directly participate in silver price movements via digital assets.

The WEEX platform now supports various precious metal tokens such as PAXG (gold token), XAUT (gold token), and XAG (silver token), providing a new investment dimension for crypto market participants. This trend is significant—it indicates the boundaries between traditional finance and crypto finance are blurring.

What to Watch Next

From a technical perspective, $79.97 is the current intraday support level; a break below might target $79.5. But more importantly, the critical bullish support at $75—if held—means the long-term upward trend remains unbroken. Resistance levels are at $83 and $85.

Summary

Today’s 3% correction in silver is just a small pullback in a rollercoaster. The real story is: this precious metal is getting closer and closer to a new all-time high, with solid supply-demand fundamentals, favorable macro expectations, and a new digital dimension opening up. Short-term volatility is normal, but the long-term trend is clear. If you follow precious metals or are considering diversified asset allocation, the retracement near support levels might even present a better entry point. The key is to watch support levels carefully and avoid chasing at the high.