Silver price set to rebound to $28 an ounce in the fourth quarter, predicts bank
Deutsche Bank has hiked its silver price forecasts 5% for 2024 and 2025, attributing the increase to the metal's close correlation with gold prices. While a potential correction in gold prices is anticipated to be mild, silver prices are expected to dip from almost $29 per ounce at the end of last week to $26 per oz in the third quarter before rebounding to $28 per oz in the fourth quarter of the year, the German bank said.
Silver's performance is currently less influenced by its traditional driver of manufacturing activity, which remains sluggish, it was also noted. Industrial production growth is hovering near stall speed, and while a modest recovery is expected after the mid-2023 trough, the impact on silver prices from this sector remains minimal.
According to Deutsche's analysis, manufacturing tends to be a weaker driver for silver prices outside of recession periods and early recovery phases, suggesting that investors might see more influence from macroeconomic factors and gold price movements in the near term.
The spot price is currently just below $22 an ounce.
Source: https://www.proactiveinvestors.co.uk