Citi: Gold and Silver Still Have Upside Potential, Geopolitical and Macro Improvements to Restore Precious Metals Investment Demand

BlockBeats News, August 12, Citi Research stated that it believes the upward trading trend for precious metals is not yet over. Silver is expected to continue following gold's direction and, due to its higher volatility elasticity, will serve as a more aggressive expression of upward movement. If tensions in the Strait of Hormuz eventually cool down, coupled with the Federal Reserve adopting a less hawkish stance, investment demand for precious metals will continue to recover. Recent market trends have provided context for this assessment. COMEX August gold futures settlement price rose 0.49%, closing at $4,383 per ounce; silver futures fell 0.5% on the day to $64.769 per ounce, ending a two-day rally. Citi believes that short-term corrections do not alter silver's positioning as a high-beta asset relative to gold. If geopolitical risks ease and funds flow back into precious metals, silver could have the opportunity to rise to $95 per ounce by 2027. However, Citi also retains a risk scenario. The bank estimates that silver still has about a 20% probability of falling to $50 per ounce, indicating that current precious metals trading remains highly dependent on interest rate expectations, dollar trends, and geopolitical risks. For the market, gold remains the core asset for defense and rate-cut expectations, while silver is better suited to express the elastic market dynamics following a rebound in risk appetite.