UBS has raised its silver price forecast, projecting the precious metal to climb to $38 per ounce within the next 12 months. This bullish outlook is driven by expectations of continued momentum in the gold rally and a modest rebound in global industrial production, the Swiss bank stated in a note on Monday.
At the same time, UBS reaffirmed its gold forecast, maintaining its projection for the metal to reach $3,000 per ounce by the end of the year. However, the bank also acknowledged the possibility of gold surging even higher under certain macroeconomic conditions. “In a risk case scenario, gold could hit $3,100 to $3,200 per ounce,” UBS analysts noted.
The forecast comes as investors continue to flock to safe-haven assets amid economic uncertainties and geopolitical tensions. Gold, which has long been a store of value in volatile times, has seen steady gains in recent months. Meanwhile, silver—often considered both a precious and industrial metal—stands to benefit from increased industrial activity and renewed demand in key sectors.
UBS’s bullish outlook on both metals suggests that precious metals investors could see substantial gains in 2025. With inflation concerns lingering and central banks continuing their gold purchases, analysts believe that the trend for higher prices remains intact. Market participants will be closely monitoring Federal Reserve policy moves, economic growth indicators, and global geopolitical developments for further cues on the trajectory of gold and silver prices.
