UBS Sees Silver Rebound to $70 by Year-End
UBS has revised its silver price forecast, predicting it will reach $70 by December and $80 by September 2027. The bank expects a gradual recovery for XAG/USD after a recent slump caused by stronger US employment data and expectations of a Federal Reserve rate rise. UBS recorded spot silver at $65.30 when compiling the forecasts.
The bank remains constructive on silver over the forecast period, citing support from gold and tighter near-term physical market fundamentals. However, it acknowledged that the metal's extreme volatility requires caution and trimmed its price outlook across all forecast horizons.
A key factor in determining silver's immediate direction will be US inflation data before the September 15-16 Federal Reserve meeting. Softer inflation could help silver challenge UBS's first $70 forecast, while a stronger reading may keep XAG/USD under pressure and delay the recovery towards $75 and $80.