UBS Sees Silver Price Soaring to $80.22 Amid Volatile Market Conditions
The price of silver remains bullish according to UBS analysts, who have identified multiple upside levels. The current level at $67.43 has already been cleared, with $71.64 and $75.93 now major targets. Analysts see borrowing activity picking up modestly, with producer flows and firmer demand supporting the metal. Despite some volatility in recent price movements, UBS sees scope for a tradeable Wave B rebound on the weekly chart.
The silver price has made significant gains this month, rising 18% above its opening level for August. The price has reached as high as $70.02, with the current price hovering around $67.95. Analysts expect further support from producer flows and firmer demand, but acknowledge that the recent rally has been volatile.
The broader precious metals backdrop is softer ahead of Kevin Warsh's Jackson Hole speech, which may see markets reassess the chances of further Fed tightening. In contrast to UBS' bullish view, Bank of America (BofA) anticipates a correction before a later move to $75. However, for now, UBS sees the current level as a key indicator of the metal's future direction.