Silver Price Forecast: Silver Bulls Test $70, Upside Momentum Continues

Spot silver extended its strong rally, rising for a third consecutive session with intraday gains exceeding 2%, bringing this week's cumulative advance past 7.4%. The metal is currently trading near $69.72, with bulls building momentum to test the $70 round-number level. Despite a firm U.S. dollar, concerns over U.S. fiscal conditions have fueled robust risk-aversion sentiment, which has outweighed the typical pressure a strong dollar exerts on precious metals and emerged as the core driver behind silver's upward move.

**Safe-Haven Demand Dominates Near-Term Direction**

The recent rise in silver prices is not driven by traditional dollar weakness; instead, it has occurred against a relatively firm dollar backdrop. This signals a shift in the current pricing logic of the silver market, as investors increasingly view silver as a hedge against U.S. fiscal uncertainty. Market reports indicate that worries over the U.S. fiscal outlook are channeling funds into the precious metals complex, with risk-aversion sentiment replacing conventional "safe-haven" demand and providing robust buying support for silver.

**Institutions Raise Forecasts but Remain Divided**

In response to silver's strong performance, major international banks have begun adjusting their expectations. According to HSBC's latest report, the bank has raised its end-2026 silver price target to $70 per ounce, set a 2027 target of $65, and projects an average price of $75 for 2026. However, HSBC also warned that the global silver market's supply-demand deficit is narrowing, which could cap sustained upside. More optimistic voices exist in the market, with some analysts suggesting silver could target $150, while other institutions predict a year-end pullback to around $35, highlighting significant divergence in outlooks.

**Long-Term Prospects Remain Favorable**

Despite sharp near-term volatility and divergent forecasts, most analyses remain bullish on silver's long-term trajectory. Key factors underpinning this view include sustained industrial demand from the green energy transition and the impact of global economic conditions and investment activity. Some long-term projections suggest silver could approach $190 by 2031, though such forward-looking estimates carry extremely high uncertainty, and investors should approach them with caution.