HSBC raises silver price outlook as supply woes likely to persist (updated)

HSBC Holdings

14/05/2026 10:57

Adds details and context throughout

May 14 (Reuters) - HSBC raised its forecast for silver for the year and 2027 on Thursday, citing persistent supply tightness and a softer U.S. dollar among a list of factors.

The brokerage expects the white metal to average at $75 per ounce in 2026, higher than the earlier outlook of $68.25, and at $68 next year, from $57.

Silver prices have risen around 22% this year so far, piling on top of the unprecedented 147% surge in 2025. The metal, which has several industrial uses, has so far outperformed gold over two years as physical supply tightened, and on retail and momentum-driven buying.

On Thursday, spot silver XAG= was trading near $87 per ounce, off the record $121.64 it hit earlier in the year.

HSBC said that prices may ease in the second half of the year as market tightness eases somewhat and the threat of tariffs gradually recedes, but will remain highly volatile.

The precious metal's prices will be aided by still-high gold prices and a host of macroeconomic and geopolitical factors, the bank said.

Although industrial and jewellery demand is falling and mine and scrap supply is growing, coin and bar demand may rise, the note said.

HSBC added that it also expects the gold:silver ratio XAU-XAG, a metric that measures how many ounces of silver it takes to buy one ounce of gold, to widen.

The bank also upgraded the white metal's average price per ounce in 2028 to $59 from $49 and in 2029 to $52 from $47.

(Reporting by Noel John and Anjana Anil in Bengaluru; Editing by Sharon Singleton and Harikrishnan Nair)

((Noel.John@thomsonreuters.com;))