UBS urged investors to maintain long positions in silver, Investing.com reports.
Silver prices have recently consolidated around $38 per ounce, but UBS expects the metal to advance toward $42 - $44 per ounce in the coming quarters, provided the Federal Reserve resumes its rate-cutting cycle.
UBS projections for the fourth quarter of 2025 and the first quarter of 2026 remain at $42 per ounce, while forecasts for the second and third quarters of 2026 have been raised to $44 per ounce.
The bank notes that drivers behind the bullish case are unchanged. Expectations of the Fed gradually shifting rates to neutral, a softer U.S. dollar in the mid-to-high single-digit range, and eventually stronger economic growth supporting industrial demand should underpin the market.
However, strategists cautioned that near-term growth concerns may limit the upside, given that more than half of silver demand comes from industrial applications.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
