Citi Predicts Silver Prices to Surge Past $90 Amid Shift in Demand

Citi analysts have reaffirmed their bullish predictions for silver prices, expecting them to surge to $90 an ounce over the next six to 12 months. This projection is based on a shift in demand from industrial applications to investment purposes.

The firm's point-price targets remain unchanged at $75 per ounce for 0 to 3 months and $90 per ounce for 6 to 12 months, with the current spot price at $65 per ounce. Citi expects continued recovery in investment demand driven by an eventual de-escalation of tensions in the Strait of Hormuz and a less hawkish Federal Reserve.

Silver's price has been impacted by macro headwinds such as higher real yields and a strong dollar, but Citi forecasts that these pressures will unwind as soon as September-December. The firm also highlights strong demand in India, with a domestic premium of around 7%, which provides additional support for prices.