Citi: Silver Price Could Rise to $90 in the Next 12 Months

Citi analysts maintain a positive outlook on silver and expect its price to rise to $90 over the next 6-12 months. The bank has also maintained a near-term target price of $75, while silver's current price stands at approximately $65.

According to Citi's assessment, the main driver of price growth will be strengthened investment demand, particularly if tensions around the Strait of Hormuz ease and the Federal Reserve shifts to a less restrictive monetary policy.

The bank views silver as an asset that moves in tandem with gold, but is characterized by higher volatility. Accordingly, silver has significant growth potential in the event of rapid de-escalation in the Middle East.

At the same time, the outlook for industrial demand is relatively weak, particularly in the solar energy sector, where technological trends reducing silver consumption are developing. However, according to Citi, investment flows will outweigh the impact of this factor.

The bank also highlighted strong demand in India, where silver trades at approximately a 7% local premium. Citi expects additional demand growth in the fourth quarter of the year, during the holiday and wedding season.