Commerzbank’s Norman Liebke has reported a downward revision in the bank's silver price forecasts, citing recent market developments. Silver has declined from USD 70 to USD 57.50 per troy ounce, prompting Commerzbank to lower its year-end target to USD 67 per troy ounce, down from the previous forecast of USD 80. The bank now expects silver to reach USD 80 by the end of 2027, compared to its earlier projection of USD 90 [1].
Despite the forecast reduction, Liebke highlights that persistent supply deficits are expected to support higher silver prices. According to forecasts from the Silver Institute and Metals Focus, the silver market was in a supply deficit for the fifth consecutive year last year, and another deficit is anticipated this year as supply is projected to decline more sharply than demand [1].
Additional factors influencing the silver market include substitution in solar applications and Indian import curbs, which have contributed to the recent price decline. However, Commerzbank expects that fundamentals, a tight market, and an anticipated recovery in gold prices will underpin further gains in silver prices over the coming months [1].
No specific market reactions or analyst opinions beyond Commerzbank's outlook are mentioned in the article. Forward-looking statements indicate that the bank remains optimistic about silver's upside, despite the lowered forecasts, due to ongoing deficits and expected gold price increases [1].
CONCLUSION
Commerzbank has reduced its silver price forecasts but maintains a positive outlook, citing persistent supply deficits and an anticipated gold recovery as key drivers. The bank expects silver to reach USD 67 by year-end and USD 80 by end-2027. Market sentiment remains cautiously optimistic, supported by tight fundamentals and projected supply shortfalls.