Investing.com — UBS expects silver prices to climb in 2025, buoyed by lower U.S. real yields and stronger global industrial production, even as the metal struggles to match gold’s central bank-driven gains.
Silver prices rose over 20% in 2024 but recently lost momentum due to higher U.S. yields, a strong dollar, and growth concerns outside the U.S. The metal is trading near its 200-day moving average, with speculative short positions growing and ETF holdings stabilizing after significant outflows earlier this year.
Despite these headwinds, UBS remains bullish, maintaining a target of $36-$38 per ounce for 2025.
Rising yields have been a headwind, but a decline could boost silver’s appeal.
A shift toward cyclical commodities is needed, which UBS expects to materialize as 2025 progresses.
UBS notes silver’s correlation with gold remains high, while its co-movement with industrial metals underscores its dual role as both a precious and industrial metal.
The gold-silver ratio, currently near 88.4x, could see silver gain ground relative to gold. UBS believes a ratio above 90x is unsustainable unless an economic recession materializes.
While silver lacks the support of central bank purchases, UBS highlights that higher gold prices lend underlying support.
This post is originally published on INVESTING.
