Commerzbank raises its 2025 silver price forecast to $35

Commerzbank analyst Carsten Fritsch raised the forecast for the year-end silver price from $33 to $35 per ounce. Such a change is due to silver reaching a new four-month high. According to the expert, the metal may soon trade steadily above $34.

The analyst believes that high industrial demand is supporting silver. The Silver Institute forecasts the market of this metal to face a supply shortage in 2025. 

In addition, Fritsch expects the gold price to reach $2,850 per ounce at the end of the year, which is higher than the initial estimate of $2,650. Silver will strengthen slightly against gold, and the gold-silver ratio will decrease to 81 in line with the five-year average, the expert says.

He also emphasizes that record high gold prices will result in dampening physical demand. Additionally, the US Federal Reserve is likely to cut interest rates less than the market is anticipating. Hence, the gold prices may continue to fall from the levels of about $3,000 during this year, Fritsch notes.