Gold is trading at $3,032.58, down $14.71. Silver is trading at $33.34, down 48 cents. Ole Hansen, Head of Commodity Strategy at Saxo, discussed gold’s recent surge above USD 3,000 per ounce, driven by growing global instability and demand for safe-haven assets. Since November 2022, gold has rallied by 75%, fueled by concerns over political, economic, and security issues, including the impact of President Trump’s policies. Central banks, particularly in emerging markets, have also contributed to the rally by diversifying their holdings away from the US dollar, buying over 1,000 tons of gold annually for the past three years.
Hansen notes gold’s role as a hedge against fiscal debt and economic uncertainty, as well as its low correlation to stocks and bonds. He also highlights silver as a strong alternative, driven by industrial demand from solar panels, electric vehicles, and 5G technology. Despite potential corrections, Saxo recently raised its 2025 peak gold price to USD 3,300, with silver potentially reaching USD 44 per ounce, suggesting that there are still arguments to be made that prices may continue higher.
