Saxo Bank analyst says macroeconomic situation shifts in favor of precious metals

Saxo Bank analyst Ole Hansen has noted a sharp rise in gold and silver prices, which he attributes to changes in the macroeconomic environment. The Bloomberg Dollar Spot Index is trading near a two-year low, contributing to the increase in precious metal prices. Geopolitical risks and fears of escalating trade tensions are also fueling this rally.

Hansen notes that protectionism in the United States and growing political polarization are prompting sovereign wealth funds and institutional investors to rebalance their portfolios by reducing exposure to American securities. Coupled with concerns about the growing US budget deficit, this dynamic has already led to a significant increase in gold prices, Hansen emphasizes.

According to the analyst, the Federal Reserve may soon reverse its policy toward easing. A sharp reduction in interest rates could push gold up to $4,000.

Meanwhile, rising copper prices, steady demand from China, and a shortage of metal stocks outside the US are creating favorable conditions for the silver rally to continue.