Gold and silver have retraced nearly 30%, while the physical supply gap remains unfilled
- Spot gold fell from its January high of $5,608/oz to $4,112, a 27% retracement; silver dropped from $121.62 to $56, down more than 50%. Meanwhile, global central banks bought 288.9 tonnes of gold in Q2, up 62% year over year and a record for the same period.
- Silver’s supply deficit in 2026 is expected to widen to 46.3 million ounces, marking a sixth consecutive year of deficits. New mine capacity takes a long time to come online, while weaker solar demand is being partly offset by demand from data centers, power grids, and electric vehicles.
This pullback mainly reflects speculative positions being unwound. If $4,112 holds, physical buying and central bank reserves should continue to provide support, and premiums over spot should narrow accordingly. At these levels, would you dare place limit orders to go long, or wait and see if it gets dumped back to $4,000?
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- Spot gold fell from its January high of $5,608/oz to $4,112, a 27% retracement; silver dropped from $121.62 to $56, down more than 50%. Meanwhile, global central banks bought 288.9 tonnes of gold in Q2, up 62% year over year and a record for the same period.
- Silver’s supply deficit in 2026 is expected to widen to 46.3 million ounces, marking a sixth consecutive year of deficits. New mine capacity takes a long time to come online, while weaker solar demand is being partly offset by demand from data centers, power grids, and electric vehicles.
This pullback mainly reflects speculative positions being unwound. If $4,112 holds, physical buying and central bank reserves should continue to provide support, and premiums over spot should narrow accordingly. At these levels, would you dare place limit orders to go long, or wait and see if it gets dumped back to $4,000?
$PAXG $BTC $ETH