Citigroup analysts have reiterated their bullish outlook on silver prices in a note to clients released on Wednesday, August 12, 2026, maintaining their price targets unchanged at $75 per ounce for the 0 to 3-month timeframe and $90 per ounce for the 6 to 12-month period. The current spot price of silver stands at $65 per ounce, according to Investing.com data. Citi's analysis suggests that investment demand is expected to take over from a softening industrial picture in driving silver prices higher over the coming months.
The firm expects continued recovery in investment demand, which they attribute to an anticipated eventual de-escalation in the Strait of Hormuz situation and a less hawkish stance from the Federal Reserve. According to Citi's research, silver should continue to track gold in direction with high beta characteristics, positioning the metal as an ideal upside play for investors betting on a quick resolution to the Strait of Hormuz standoff. The firm believes investment flows will dominate price trends, particularly as solar demand faces a structural slowdown from thrifting and the adoption of back-contact, or BC, cell technology.
Silver has faced macroeconomic headwinds including higher real yields and a stronger US dollar. However, Citi's base case scenario anticipates that this situation could de-escalate as soon as September through December, potentially unwinding these pressures that have weighed on prices. The analyst team also highlighted strong demand dynamics in India, where a roughly 7 percent domestic premium has been noted, which provides additional price support.
Demand in India is expected to strengthen further in the fourth quarter, driven by the festive and wedding season. Looking ahead, Citi expects the global silver market to remain in deficit through 2027. The firm pointed to resilient demand from artificial intelligence applications, 5G technology, and electric vehicles as supporting factors.
Additionally, the adoption of back-contact cell technology in solar is expected to accelerate and could potentially emerge as a leading solar technology by 2028. The analysis from Citi comes as silver futures on the COMEX trading platform showed gains on the day of the report, reflecting broader commodity market dynamics and investor positioning in precious metals. Source: Investing.com, Citi analysts note published August 12, 2026.
Source: investing.com