Saxo Bank says precious metals poised for further gains in second half of 2025

Ole Hansen, Head of Commodity Strategy at Saxo Bank, believes prices of precious metals will continue to rise in the second half of this year, with new drivers likely to join the existing ones. 

Lower US interest rates could boost demand for metal-backed exchange-traded funds. Additionally, central banks are increasingly allocating to gold as a key reserve asset.

Precious metals’ prices are expected to be supported by a weaker dollar, growing concerns over US fiscal policies, and geopolitical tensions. Hansen also highlights the shift of institutional investors away from American Treasuries and equities toward tangible assets. 

Meanwhile, silver is projected to surge further after recently breaking above $35 an ounce. Central bank demand for gold has pushed the ratio of the two metals toward 90. A decline in that gauge could drive silver up to $40 over the next 6–12 months if supply struggles to keep up with industrial and investment demand, Hansen says.