Silver has climbed above $105 per ounce , breaking new ground for the precious metal as institutional forecasts turn increasingly bullish amid tight physical markets, rising industrial demand, and geopolitical uncertainties. The rally above prior highs refocuses attention on silver’s dual role, both as an industrial metal critical to modern technologies and a safe‑haven asset in uncertain macroeconomic conditions. Citi Sees Silver Reaching $100+ Citigroup’s commodities strategists have issued a bullish outlook for silver, lifting their near‑term price target to $110 per ounce, driven by “heightened geopolitical risks, ongoing physical market shortages, and renewed uncertainty on Federal Reserve independence.” Citi also reiterated its view that silver is poised to outperform gold in the current rally. According to the forecast, silver’s strong performance reflects deeply drawn inventories, accelerating industrial demand, and strong investor interest. Analysts emphasize that the metal’s recent gains, outpacing gold and broader markets are more than a short‑term spike and may signal a structural shift in precious metals demand. Bullish Drivers Behind the Rally Supply Constraints & Tight Inventories Silver’s physical market remains unusually tight, with inventories at key exchanges drawn down significantly over recent quarters. This has heightened the risk of supply squeezes and supported upward pressure on prices. Industrial Demand Surge Silver’s critical role in renewable energy (especially photovoltaics), electric vehicles, and electronics manufacturing has boosted long‑term demand expectations, adding a robust fundamental underpinning to the price rally. Safe‑Haven & Monetary Appeal Amid ongoing macroeconomic uncertainty, including debates around inflation, interest rate policy, and geopolitical tensions — investors continue shifting toward precious metals as portfolio hedges. Silver’s recent outperformance relative to gold underscores its appeal across both defensive and cyclical demand drivers. Citi’s Broader Precious Metals View While Citi’s gold and silver forecasts both reflect an ongoing bull market, the bank’s analysts have highlighted silver’s potential to outperform gold over the near term due to its combination of industrial growth and investor demand. Their revised targets reflect short‑term momentum and structural shifts in metal markets. Citi’s optimism is rooted in a convergence of factors: physical shortages, resilient industrial use, and macroeconomic risk, suggesting that silver could continue higher even after its strong gain past the $100 threshold.
