Citi Sticks with $90 Silver Forecast Despite Recent Pullback

Silver has had a wild ride this year, trading near $64.25 per ounce on August 14 and leaving it about 10% behind its 2025 closing price. The metal's sharp drop is largely due to uncertainty surrounding the Strait of Hormuz, which has raised inflation and growth concerns, negatively impacting industrial consumption.

However, Citi analysts remain bullish on silver, predicting that it will reach $90 an ounce over the next six to twelve months, a 40% increase from its current price. They attribute this optimism to stronger investment demand, which they expect to offset the relatively soft industrial demand for the metal.

Citi notes that the Strait of Hormuz crisis is expected to de-escalate between September and December, which could weaken two major headwinds silver is facing: higher yields and a stronger U.S. dollar. The bank also expects strong demand from AI, 5G, and electric vehicles, keeping the global silver market in deficit through 2027.

While Citi's price target of $90 may seem conservative compared to its previous predictions, which included forecasts for silver to reach $100 by March and $110 in the second half of 2026, it still represents a significant upside from the current price. The bank's optimism is also supported by recent inflation numbers, which show that July CPI jumped to 3.4% year over year, just 0.1 percentage point higher than June.