UBS cuts silver price forecasts. Here are the new targets

UBS has cut its silver price forecasts across multiple horizons, citing weaker investment demand, softer industrial (notably photovoltaic) consumption and stronger mine supply. The bank trimmed its near- and medium-term targets (e.g., June-end to $85 from $100; March 2027 to $75 from $85) and now expects the 2026 market deficit to narrow to roughly 60–70m oz from a prior ~300m oz. ETF holdings have fallen by about 70m oz to ~794m oz and UBS reduced its full-year investment demand estimate to 300m oz (from above 400m oz). The revisions signal reduced upside for silver and a broadly sideways price outlook in UBS’s base case; the bank still sees gold (and a rising gold-silver correlation) as a stabilizing anchor. UBS favors selling volatility rather than outright longs given elevated implied volatility. Overall, the note implies downside-to-neutral near-term pressure on silver prices and weaker fundamentals than previously assumed.