Silver's Split Personality: JPMorgan Slashes Price Target Amid Supply Squeeze Uncertainty

Silver prices have been caught between two competing narratives: one pointing to a structural supply squeeze that has driven its recent multi-month rally, and another suggesting that physical tightness is unwinding.

J.P. Morgan Global Research has forecast a sharp reversal in silver's fortunes, slashing its 2026 average price target from $84 to just $70 per ounce.

The bank attributes this change of heart to an easing supply squeeze, leaving the metal more exposed to the whims of the bond market and the Federal Reserve.

Despite this cautionary view, near-term price action continues to hinge on monetary policy, with investors awaiting clarity from the Fed's upcoming meeting and Jackson Hole symposium.