UBS noted a significant increase in silver prices, attributing the increase to investors’ growing belief in bullish gold trends. The gold-silver ratio has fallen sharply, reaching the lowest level since late 2022 to early 2023. Despite a recent decline in precious metals prices, the ratio has maintained its position near this low.
Silver has captured the attention of investors who previously overlooked gold’s rise, as well as investors looking for more volatile trading options. The metal has benefited from a recent wave of risk-off sentiment and strong performance in the industrial metals sector, leading to a price breakout.
The supply and demand dynamics for silver are also in the spotlight, with tight conditions providing additional support to the metal’s value. UBS suggests that these factors, combined with the current momentum in precious metals, could result in significant upside potential for both gold and silver going forward.
UBS’s outlook for silver is bullish, with expectations of significant upside risks to their projections for the metal, as well as for gold. This positive sentiment reflects the adage that a comeback can be much stronger than the initial setback, indicating a robust recovery in silver prices after any declines.
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