Silver Retreats After Breaching $80 As Precious Metals Correct

Updated: December 29, 2025 14:37

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Precious metals witnessed a pullback on December 29, 2025, with silver prices retreating after briefly crossing the $80 per ounce mark. Gold also eased from recent highs as investors booked profits. Analysts attribute the correction to global market volatility, profit-taking, and shifting expectations around U.S. monetary policy.

Precious metals markets saw a notable retreat as silver, which had surged past $80 per ounce earlier in the week, corrected sharply amid profit booking. Gold prices also softened, reflecting cautious investor sentiment after a strong rally driven by geopolitical tensions and expectations of monetary easing. The correction highlights the volatility in commodity markets as traders reassess positions at year-end.

Key highlights from the announcement include

Silver prices fell after breaching the $80 per ounce level, marking a significant correction from recent highs.
Gold also eased, slipping below $2,600 per ounce as investors booked profits.
Analysts noted that the retreat was triggered by profit-taking and short-term adjustments in global commodity markets.
Expectations of U.S. Federal Reserve policy shifts and easing inflationary pressures influenced investor sentiment.
Industrial demand for silver remains strong, particularly in renewable energy and electronics, which could support long-term prices.
Gold continues to be viewed as a safe-haven asset, though near-term volatility is expected due to global market cues.
Market experts highlighted that the correction is healthy, preventing overheating in precious metals markets.
Silver’s rally earlier this month was driven by supply constraints and robust investor demand, making the pullback a natural adjustment.
Traders are closely watching support levels around $75 for silver and $2,550 for gold.

Despite the retreat, long-term fundamentals for both metals remain intact, supported by industrial demand and geopolitical uncertainties.

The retreat in silver and gold underscores the cyclical nature of commodity markets, where sharp rallies are often followed by corrections. While short-term volatility may persist, analysts believe the broader outlook for precious metals remains positive, driven by industrial demand, investment flows, and global uncertainties.

As 2026 approaches, investors are expected to balance profit-taking with long-term positioning in precious metals, ensuring that silver and gold continue to play a central role in diversified portfolios.

Sources: Economic Times, Business Standard, Moneycontrol, Mint

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