Silver Rebounds to $64.48 as UBS Holds $70 Target
Silver prices recovered to $64.48 on Friday, gaining 1.64% after a volatile week. UBS maintains its forecast of $70 for December 2026, citing limited dollar impact from expected Fed moves.
Silver prices recovered to $64.48 per ounce on Friday. The metal gained 1.64% on the day, clawing back less than a third of Thursday’s losses. Despite the rebound, XAG/USD remains down 2.6% for the week. UBS holds its forecast of $70 for December 2026. This target sits 8.6% above Friday’s closing price. The bank also projects $80 per ounce by September 2027.
The recovery occurred despite US core inflation accelerating to 0.3% month-on-month in August. This figure rose from 0.2% in July. UBS had anticipated a rate hike before these figures were released. The bank expects the Federal Reserve to raise its policy rate by 25 basis points. UBS notes that the hike itself should have limited market impact. The focus remains on the tone of the Fed’s communication.
UBS maintains long-term silver targets
UBS projects silver prices to reach $75 in March and June 2027. The price is expected to hit $80 by September 2027. This September target is 24% higher than the current market price. The bank retained these earlier projections despite recent volatility. The forecast assumes a sustained recovery in metal demand. Current prices must close the gap to the $70 December estimate.
Dollar strength limits upside potential
UBS states it does not expect a hawkish rate hike. Such a move would provide broad support for the dollar. A stronger dollar typically weighs on silver prices. The bank believes room exists for silver to recover. This recovery depends on the dollar not strengthening materially. The Fed’s September 15-16 meeting will test this outlook. Most of Thursday’s silver losses remain unrecovered.
Inflation data complicates rate outlook
US core inflation showed an unexpected increase in August. The month-on-month rate rose to 0.3% from 0.2%. UBS economists base their case on a 25 basis point hike. They argue the decision’s impact depends on market interpretation. The tone of the subsequent press conference is critical. A dovish message supports silver prices. A hawkish stance could strengthen the dollar and pressure metals.
