Silver Tops $105 as Citi Forecasts Further Rally to $110
Silver (XAG) climbed above $105 per ounce as Citi raised its near-term target to $110, citing tightened physical inventories, rising industrial demand and heightened geopolitical risk. Citi’s commodities strategists expect silver to outperform gold in the current rally, driven by low exchange inventories, increased use in photovoltaics, EVs and electronics, and safe-haven flows amid macro uncertainty. The bank points to a convergence of supply constraints, accelerating industrial consumption and investor interest as reasons the move may be structural rather than a short-term spike. Key data points: XAG > $105, Citi target $110. Primary keywords: silver price, XAG, Citi forecast.
Bullish
This development is bullish for markets that track precious metals and risk assets exposed to inflation and safe-haven flows. Citi’s authoritative upgrade to a $110 near-term target adds institutional weight, likely attracting additional macro and commodity-focused capital into silver-related instruments (physical silver, ETFs, miners). Tight exchange inventories and escalating industrial demand (PV, EVs, electronics) increase the risk of supply squeezes, supporting further price upside. In the short term, expect momentum-driven buying, ETF inflows and volatility spikes as traders chase breakout levels above $100–$105. In the medium-to-long term, structural demand from clean-energy technologies combined with constrained physical stocks could sustain higher price floors and favor silver over gold, especially if geopolitical or monetary policy uncertainty persists. Historical parallels: past rallies (e.g., 2020–2021) saw similar ETF inflows and industrial-demand narratives driving extended rallies; however, traders should monitor inventory data, industrial demand indicators, Fed communications and positions in silver futures for signs of profit-taking or rapid reversals. Key trading implications: consider long exposure via ETFs or miners for a bullish tilt, use tight risk management around reversals, and watch liquidity in physical markets.