HSBC Raises Silver Price Outlook Amid Geopolitical Risks and Gold Strength

HSBC has raised its silver price forecasts for 2025, 2026, and 2027, citing strong support from high gold prices and safe-haven demand amid geopolitical and economic uncertainty. The bank expects average silver prices of $35.14 per ounce in 2025, up from $30.28 previously, and $31.79 in 2027, versus $28.30 formerly. However, HSBC cautioned that the rally is driven more by silver's relationship with gold than underlying fundamentals.

HSBC has significantly revised its silver price forecasts for 2025, 2026, and 2027, citing strong support from high gold prices and safe-haven demand amidst geopolitical and economic uncertainty. The bank now expects average silver prices of $35.14 per ounce in 2025, up from its previous forecast of $30.28. For 2026, the forecast is $33.96 per ounce, compared to the previous $29.70, and for 2027, the forecast is $31.79 per ounce, up from the previous $28.30 [1].

HSBC attributes the upward revision primarily to silver's relationship with gold, rather than underlying fundamentals. The bank notes that silver continues to draw support from high gold prices and safe-haven demand, driven by geopolitical tensions and economic policy uncertainty [1].

In addition to the silver price forecasts, HSBC has seen increased institutional interest in its stock. ABC Arbitrage SA, for instance, significantly boosted its holdings in HSBC by 1,132.8% during the first quarter, owning a total of 50,669 shares valued at approximately $2.91 million [2]. This increase follows HSBC's strong earnings report, which revealed an EPS of $1.95, exceeding analysts' estimates of $1.62, and contributing to a revenue of $16.90 billion for the quarter [2].

Several other institutional investors have also increased their holdings in HSBC. JPMorgan Chase & Co., for example, lifted its holdings by 79.8% during the fourth quarter, owning 102,207 shares worth $5,055,000 [2]. The firm's 50-day simple moving average is $61.07 and its 200-day simple moving average is $57.35, indicating a stable performance [2].

Despite the positive earnings report and increased institutional interest, HSBC faces a challenging market environment. The stock's 52-week low is $39.42 and its 52-week high is $65.75, indicating volatility [2]. Analysts have given HSBC a consensus rating of "Hold" with a target price of $63.00, reflecting a cautious outlook [2].

In conclusion, while HSBC's silver price forecasts have been revised upward, the bank's stock faces a challenging environment. The increased institutional interest, however, suggests a degree of confidence in the company's financial health.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3U01AH:0-hsbc-raises-2025-2026-and-2027-average-silver-price-forecasts/
[2] https://www.marketbeat.com/instant-alerts/filing-abc-arbitrage-sa-purchases-46559-shares-of-hsbc-holdings-plc-nysehsbc-2025-08-05/