Silver Price Analysis: XAG/USD to advance toward $25 by end-2023 – Commerzbank

Silver (XAG/USD) price looks back on a mixed year. Economists at Commerzbank expect the precious metal to enjoy a favourable market situation next year and end 2023 at $25.

Silver can make up further ground against Gold

“Industrial demand is expected to mark a record level, as is demand for coins and bars as well as jewelry and silverware. This prospect and our forecast of a higher Gold price argue for a rising Silver price.”

“Silver should also benefit from the end of the Fed's interest rate hikes and the speculation on interest rate cuts that will start thereafter. The expected economic recovery following the end of the recession should additionally benefit Silver as a precious metal with a high industrial use.”

“With the easing of corona restrictions in China, Silver demand should receive a further boost, as China is the largest consumer of Silver.” 

“We think Silver can make up further ground against Gold. We expect a price level of $23 at mid-year and a price increase to $25 by the end of 2023. The Gold/Silver ratio would then be 74.”