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Supply-Demand Imbalance and Rising Safe-Haven Demand Prompt HSBC to Significantly Raise Silver Price Forecast
HSBC has raised its silver price forecast, citing long-term tightness in the physical market, strong investor demand, and heightened geopolitical and economic policy uncertainties.The bank now expects silver prices to rise to $68.25 per ounce in 2026, up from its previous forecast of $44.50 per ounce. Prices for 2027 and 2028 are projected to be $57 per ounce and $49 per ounce, respectively.Last year’s first-quarter U.S. tariff threats triggered a surge in silver prices, leading to the transfer of tens of millions of ounces of silver from warehouses in London and elsewhere to New York. Analysts noted: “The tightness in the London market and the extreme spot premium in the CME futures market highlight the recent shortage of deliverable silver.This may not be resolved until later in 2026.” Supportive factors such as high gold prices, Federal Reserve’s interest rate cuts, and a weaker U.S. dollar are also expected to bolster the market outlook.
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