UBS Global Wealth Management strategists said silver and platinum will outperform gold this year as the economy recovers and industrial demand picks up.
A greater focus from policymakers on renewable energy and decarbonisation this year may also help silver.
According to UBS, more than 50 per cent of silver used in industrial applications is linked to solar panels and electronics.
Meanwhile, gold will struggle to attract sufficient exchange-traded fund inflows to sustain prices above $US1900, said UBS.
The bank sees the asset finishing the year 2.5 per cent below current levels, at $US1800 an ounce.
Last year was one of the best years on record for gold, as investors piled into the safe-haven asset amid geopolitical and economic uncertainty. The precious metal even hit a record high of $US2075 on August 7.
But UBS Global Wealth Management strategists don’t see gold repeating its stellar performance this year. Instead, the firm sees other metals – including silver and platinum – outperforming gold during the year ahead.
