Saxo Bank Predicts Gold Could Hit $5,000 Within a Year Amid Global Uncertainty
Record-high gold prices are likely to continue their ascent, possibly reaching $5,000 per ounce within the next year, according to Ole Hansen, Head of Commodity Strategy at Saxo Bank. The forecast, shared during a Bloomberg HT broadcast, reflects growing investor demand for gold as a safe haven asset amidst persistent geopolitical tensions and evolving economic conditions.
The surge in gold’s value-a 50 percent increase-is driven by concerns surrounding the independence of the Federal Reserve, expectations of decreasing interest rates, and a generally unstable global landscape, Hansen explained. While a correction of $200-$300 is possible, he believes it wouldn’t alter the overall upward trend. Current resistance is seen around $4,150, but the entry of Chinese investors could further fuel the rally.
Hansen noted that investors are seeking clarity on the underlying factors driving gold’s performance, viewing the current price increases as a signal of further gains and potentially discouraging selling.He anticipates that the bulk of this year’s rally is yet to come, supported by a backdrop of sticky inflation, falling interest rates, and a stable, though challenging, political climate in the U.S. and worldwide.
