Silver Prices Settle in Mid-60s Amid Solar Demand Slump
Silver trades at $64 per ounce as industrial demand weakens. Analysts project stability in the mid-$60s despite gold's recent volatility.
Silver prices closed the week at $64 per ounce. This level sits within the mid-$60s range favored by major banks. The metal retreated from a recent high of $71. Market participants are adjusting to new rate expectations.
JPMorgan predicts silver will average $63 in the fourth quarter. Julius Baer sets a 12-month target of $67.50. These forecasts align with current trading levels. The consensus expects limited upside in the near term.
Interest Rates Drive Price Corrections
The US Federal Reserve is expected to raise rates in mid-September. Higher interest rates reduce the appeal of non-yielding assets. Silver and gold do not pay income. Investors are closing long positions rather than selling aggressively.
Ole Hansen at Saxo Bank describes the move as a correction. He views it as part of an established trend. It is not a fundamental bearish shift. Silver fell nearly 3 percent on Thursday. This decline mirrors broader precious metals weakness.
Solar Demand Decline Impacts Consumption
Photovoltaic solar panels drive significant silver consumption. China imported large silver stocks in March to meet tax deadlines. Manufacturers have since reduced their inventory. Technological changes lower silver usage per panel.
JPMorgan forecasts a 30 percent drop in solar demand in 2026. This equals a loss of 60 million ounces. Overall demand in 2025 was 1.1 billion ounces. This is the lowest figure since 2021.
Gold Correlation Supports Silver Outlook
Silver prices correlate with gold. Gold peaked at $5,600 per ounce in January. It has since declined but remains high. Philip Newman of Metals Focus notes this link. If gold hits $5,000 by year-end, silver could reach $80.
Physical investment in the Middle East tripled in 2025. The Silver Institute reports record demand of 353 tonnes. India imported 2.6 million kilograms in 2024. The UAE supplied 92 percent of that volume. GN auto markets/commodities: gold prices data supports this view.
