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Commodities analysts at UBS Group (NYSE: $UBS ) have turned bearish on silver.

The Swiss bank says that silver's price is likely to remain volatile but offer limited upside over the next 12 months.

"Silver prices, like gold, have been volatile during the U.S.-Israel conflict with Iran and Iran's retaliation against neighboring countries," writes UBS in a note to clients.

Silver, which is both a precious and industrial metal, has enjoyed a blistering rally, with its price more than doubling over the past year.

The metal's price neared $100 U.S. per ounce following the start of the war in Iran before falling back below $85 U.S.

UBS said the failure of silver to hold its recent gains shows its "limited value as a long-term hedge."

The analysts at UBS also note that options markets are betting 80% that volatility in silver's price will continue in the near-term.

As such, UBS expects silver's price to settle around $85 U.S. by March 2027.

Despite its bearish 12-month view of silver, UBS notes that it still expects the global silver market to remain undersupplied, estimating a deficit of roughly 300 million ounces.

Silver (TVC: $SILVER ) is currently trading at $82.43 U.S. per ounce. The metal's price reached an all-time high of $129.64 U.S. an ounce on January 29 of this year.