Silver prices retreated on Thursday after touching fresh record highs earlier in the week, as traders locked in profits following one of the strongest rallies in the metal’s modern trading history. The pullback highlights growing short-term caution even as longer-term fundamentals and technical signals continue to point toward a structurally bullish outlook.

Spot silver fell to around $65.45 per ounce, down 2.18% on the session, retreating from intraday highs near $66.82. The decline came after silver briefly approached the upper end of its 52-week range, which now spans $27.55 to $67.18, underscoring how far prices have advanced over the past year.

Profit-Taking Emerges After Parabolic Advance

The latest move appears driven primarily by profit-taking rather than a shift in the broader narrative. Silver remains up nearly 30% over the past month, 55% over three months, and more than 113% year-on-year, reflecting powerful momentum fueled by macro uncertainty, easing real-rate expectations, and surging industrial demand.

Market participants note that such sharp pullbacks are common following record-setting moves, particularly when prices stretch far above short-term averages. The intraday volatility seen during the session suggests traders are actively rebalancing positions rather than exiting the market entirely.

Short-Term Technicals Cool While Long-Term Signals Stay Bullish

The technical picture reflects this divergence. Hourly indicators have flipped to Sell, while 30-minute readings remain neutral, signaling short-term exhaustion. Technical indicators currently show Strong Sell bias, highlighting near-term pressure as momentum cools.

However, the broader trend remains intact. 5-hour, daily, weekly, and monthly signals continue to flash Strong Buy, supported by upward-sloping moving averages and sustained higher lows on longer-term charts. This configuration typically points to consolidation within an uptrend rather than the start of a deeper reversal.

Analysts suggest that silver may need time to build a new base before attempting another leg higher, particularly after such an aggressive advance.

Industrial Demand and Tight Supply Still Underpin Prices

Beyond technicals, silver’s fundamentals remain compelling. Demand from solar energy, electric vehicles, electronics, and data centers continues to expand, reinforcing silver’s dual role as both a precious metal and a strategic industrial input. At the same time, global mine supply has struggled to keep pace, contributing to tightening inventories.

Retail investment interest also remains elevated, with silver increasingly viewed as a higher-beta alternative to gold in an environment of moderating inflation and heightened geopolitical uncertainty.

What to Watch Next

Looking ahead, traders will closely monitor upcoming U.S. inflation data, Federal Reserve commentary, and signs of physical demand resilience to gauge whether silver can stabilize above the $65 level. A sustained hold above this zone would likely reinforce confidence in the longer-term bullish structure, while deeper pullbacks could attract renewed buying interest from longer-horizon investors.

For now, silver appears to be digesting gains rather than losing momentum, suggesting volatility may persist even as the broader trend remains favorable.