Natixis expert maintains bullish outlook for silver despite price correction

Silver struggles to hold critical support at $36 an ounce as gold consolidates near $3,300 per ounce. However, Bernard Dahdah, analyst at Natixis, notes that silver may continue rising as it breaks away to forge its own path.

The expert projects silver prices to reach approximately $38 per ounce by year-end, while gold is expected to fluctuate around $3,250 per ounce.

Dahdah justified his bullish outlook by highlighting silver's significant divergence from gold. Historically, the correlation between the two metals stood at an exceptionally high 0.8. However, since the beginning of the year, this metric has declined to 0.55. The analyst believes this decoupling should provide sustained support for silver prices.

Gold has significantly outperformed silver over the past two years due to economic and geopolitical instability. However, silver began to catch up in May as industrial demand strengthened. Dahdah identifies this resurgent sectoral demand as the primary driver behind silver’s price momentum.