December Silver futures, after hitting a new all-time high of $53.76, saw an outside range day reversal, a recognized technical pattern. This pullback, with the low at $49.66, is viewed as a natural market correction following a strong, unprecedented rally, allowing the market to consolidate and digest the recent strong gains. Easing global trade tensions and a temporary reduction in safe-haven buying diminished the flight-to-safety narrative. Despite the sell-off, the bullish case for Silver futures remains intact, supported by persistent structural deficits, with global consumption outpacing mine production for the fifth consecutive year in 2025. Strong industrial demand from sectors like solar, electric vehicles, and infrastructure continues to tighten physical supply, and market backwardation signals severe scarcity.
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