Citi predicts that silver prices will hit USD 43 per ounce in the coming months. The forecast for Brent crude oil in 2026 has dropped from USD 65 to USD 62 per barrel. The bank is also optimistic about natural gas (Henry Hub), setting a short-term target of USD 3.8 per MMBtu and expecting it to exceed 11k by the end of 2026. For aluminium, Citi is equally optimistic as for copper, raising the average price forecast for 2027 from USD 3,000 to USD 3,500 per ton. These insights come from Reuters. Given the prediction for silver to reach $43/oz, we should consider opening long positions via call options or futures contracts expiring next quarter. This approach is backed by the Federal Reserve’s dovish signals from its August 2025 meeting. Such signals usually weaken the dollar and support precious metals. Additionally, industrial demand remains strong, with solar panel producers increasing their silver orders by 12% in Q2 2025 compared to the previous year. With Brent crude oil’s reduced forecast for 2026 at $62/bbl, it may be wise to adopt longer bearish positions. In the coming weeks, we could sell call spreads or buy puts for mid-2026 to prepare for this anticipated decline. The latest EIA report showed an unexpected inventory increase of 2.5 million barrels, and concerns about slowing economic growth in Europe are impacting future demand. The positive short-term target for natural gas at $3.8/MMBtu presents a good opportunity as we approach the winter heating season. We should consider purchasing November or December 2025 futures contracts, as early forecasts predict a colder-than-normal start to winter in key consumption areas. U.S. natural gas storage is currently about 4% below the five-year average, which adds pressure on prices. With a promising long-term outlook for aluminium, we can start building positions in contracts for 2026 and 2027. The expected increase to $3,500/ton is driven by aluminium’s vital role in the green energy transition, especially for electric vehicles and renewable infrastructure. We’ve seen similar trends during 2021-2022 when supply issues and high energy costs pushed prices to record highs.

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