BlockBeats News, May 28th, the silver market is facing a dual test of weakening demand and price pressure, with multiple institutions pointing out that the "aftereffects" of the 2025 price surge are now emerging.

The silver price briefly surpassed $120 per ounce on January 28th before plunging nearly 30% in a single day. Although there was a rebound afterwards, the price has continued to fall overall. After rising to around $87 on May 14th, it once again faced selling pressure. In the past two weeks, it has mainly fluctuated in the range of $75 to $78, dropping over 3.5% to around $71.98 on Thursday.

UBS pointed out in a recent report that the approximately 140% price increase in 2025 has significantly dampened downstream industrial demand, and warned that as long as the price remains at the current level, demand contraction may continue. The bank also believes that unlike gold, which benefits from central bank purchases, silver lacks a strategic demand anchor and is therefore "unattractive" in the current environment.

HSBC similarly considers silver to be "overvalued" fundamentally, with limited upside potential. It predicts that the gold-silver ratio may widen in the future, leading to relative weakness in silver prices. Macquarie, from a macro perspective, gives a more negative outlook, expecting the Federal Reserve to raise interest rates again in the first half of 2027, exerting pressure on precious metals. It warns that there is significant downside risk to the silver price if the macro situation further deteriorates.