Investing.com — In a note to clients on Wednesday, Citi analysts reiterated their bullish silver price targets, saying the metal could climb to $90 an ounce over the next six to 12 months as investment demand takes over from a softening industrial picture.
The firm kept its point-price targets unchanged at $75 per ounce for 0 to 3 months and $90 per ounce for 6 to 12 months, against a spot price of $65 per ounce.
Citi expects “continued recovery in investment demand” driven by an eventual de-escalation in the Strait of Hormuz situation and a less hawkish Federal Reserve.
Citi said silver should “continue to track gold in direction with high beta,” making it “an ideal upside play” for a quick resolution to the Strait of Hormuz standoff.
The firm expects investment flows to dominate price trends, as solar demand faces a structural slowdown from thrifting and the adoption of back-contact, or BC, cell technology.
Silver has faced macro headwinds including higher real yields and a strong dollar, but Citi’s base case is for the situation to de-escalate, potentially “as soon as September-December,” unwinding those pressures.
The firm also flagged strong demand in India, reflected in a roughly 7% domestic premium, which provides additional support for prices, with demand seen strengthening in the fourth quarter on the festive and wedding season.
Citi expects the global silver market to stay in deficit through 2027, supported by resilient demand from AI, 5G and electric vehicles, while BC adoption accelerates and potentially emerges as a leading solar technology by 2028.
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