According to global market data, silver prices dropped below the $62 per ounce mark during Friday's trading after reaching record levels earlier in the session. This decline is attributed to a wave of short-term profit-taking, as the market enters a temporary cooling phase ahead of the weekend, despite ongoing supportive fundamentals for the medium-term bullish trend.

Silver continues to benefit from the recent interest rate cuts by the U.S. Federal Reserve, along with less hawkish monetary policy expectations moving forward. Fed Chairman Jerome Powell indicated that there is no need for further hikes this year, with one additional cut expected in 2026 and another in 2027.

The positive outlook for silver is bolstered by:

• Strong inflows into metal-backed ETFs.
• A significant increase in consumer demand.
• Rising industrial demand from solar energy, electric vehicle sectors, and data center infrastructure.

These factors suggest a potential market deficit next year.

Conversely, the markets highlighted signs of pressure in physical delivery operations, with lending rates in London rising alongside the actual borrowing costs for silver, reflecting ongoing tensions in actual supply in the market.

Despite the temporary decline, silver's trajectory remains supported by supply-demand balances, growth forecasts in industrial sectors, and continued investment liquidity towards precious metals in a less hawkish monetary environment.