Gold to fall by 25%, silver to surge 13% in 2025, says Citigroup analysts
The prices of gold and silver in India are largely dependent on the global prices of these two metals since every year a large quantity of these are imported in the country to whet the rising demands.
Kolkata: Gold prices can come off its dizzy heights by as much as 25% this year, while silver can climb 13%, CITI group has said. The outlook of silver is powered by the rising demand for investment in the backdrop of tightening supplies. According to reports, Citigroup experts have predicted that the price of silver can jump to $40 per ounce. This is turning out to be the age of silver with prices rising more than 3% in the past one month and as much as 30% in year-to-date.
Citi's projections are that the price of the safe-haven metal will rise by 5% to touch $40 in the short term. The rise could be 13% to touch $43 in six to 12 months.
In fact, Citi analysts are far more bullish about silver than they are about the future of gold, which they think is going to suffer an erosion in prices this year. In June the group's analysts mentioned that the end of the bull-run is near and the yellow metal will reverse shortly. They also forecast that the price of the safe haven metal will dip below $3,000 an ounce.
Citi has that gold prices could consolidate above the $3,000/ounce level in the next quarter and will decline below that mark in 2026. In fact, in the second half of 2026, the yellow metal prices could tumble between $2,500 and $2,700 an ounce.
"We expect silver availability to tighten on consecutive years of deficit, sticky stockholders requiring higher prices to sell, and robust investment demand,” the Citi analysts wrote.
The $30 billion silver market is very sensitive to changes in demand. The demand of the white metal which finds a lot of use in electronics, solar energy, medicine, and other industrial applications, is expected to witness demand exceeding supply for the fifth year on the trot in 2025. According to the Citi projections, the demand could kiss 1.20 billion ounces compared to a global supply of 1.05 billion ounces.
Incidentally, the price of both gold and silver in India is heavily dependent on the global markets since every year a lot of imports take place to whet demands in India. While the renewable energy and electronics sectors are big consumers in India, the jewellery and household sectors in India are also big consumers of the white metal. Gold is the second biggest item in India's import bill after crude oil and India is the second biggest consumer of gold in the world after China.
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