Citi Forecasts Silver Price Recovery to $90 Within a Year
Silver trades near $63 per ounce, down from a January peak above $121. Citi projects a rebound to $75 soon and $90 within twelve months.
Silver prices settled at approximately $63 per ounce on Tuesday. This level represents a decline of nearly half from the all-time high of over $121 recorded in January. The metal has traded sideways in recent weeks despite earlier volatility.
Citi analysts project a near-term rise to $75. They forecast a further increase to $90 within the next six to twelve months. The bank acknowledges that silver remains more volatile than gold, with potential for prices to exceed targets if momentum builds.
Fed policy shifts drive metal demand
Citi links the price outlook to a potentially less hawkish Federal Reserve. A softer monetary stance is expected to attract investors back to precious metals. This shift may favor silver over gold due to its higher upside potential.
The bank also anticipates easing geopolitical tensions in the Middle East. Lower oil prices resulting from this stability could prompt a rotation out of energy stocks. Investors may redirect capital toward silver as a safer asset class.
ETF exposure offers diversified market access
The iShares Silver Trust tracks spot silver prices closely. The fund is down 17% this year but remains up 47% over the past twelve months. It provides a liquid instrument for portfolio diversification.
GN auto markets/commodities: silver prices data confirms the current discount relative to historical highs. The exchange-traded fund serves as a hedge against equity market uncertainty. Its performance reflects the broader physical metal market movements.
