Precious Metals are Shining Bright: A Blend of Record Highs, Safe-Haven Stability, and Short-Term Volatility

Gold: Breaking Records

Gold has achieved a fresh record near USD 3,800. This climb underscores consistent buying interest, supported by macroeconomic factors. We are approaching 42% year-to-date gain and uncertainty around U.S. fiscal sustainability, sticky inflation, and the potential erosion of central bank independence are reinforcing gold's appeal. 

Silver: Outpacing Gold

Silver has outperformed gold percentage-wise, surging 50% to USD 44.46, a 14-year high. Its dual role as a monetary and industrial metal enhances its attractiveness. Long-standing supply deficits further fuel this rally, with projections indicating a 10–15% shortfall in total annual demand for 2025.

Platinum: A Resurgence

Platinum, often in the shadow of gold and silver, has reclaimed investor focus. Following a decade of stagnation, platinum saw a resurgence after the World Platinum Investment Council forecasted another annual supply deficit. U.S. trade policies, Chinese demand, and attractive valuation relative to gold spurred renewed interest, with platinum rising 67% year-to-date and briefly surpassing USD 1,500—its best level in 11 years.

Risks of Overextension and Medium term outlook 

Despite the supportive backdrop, technical indicators suggest potential for a healthy correction. A hawkish policy surprise or geopolitical tension could prompt corrective movements, especially given speculative futures market positioning. However, in the medium term, the investment case for gold and precious metals remains bullish. Lower real yields, a softening dollar, and growing political risks support sustained allocations. Potential headwinds from reduced central bank buying as reserve values rise—alongside fiscal credibility concerns—could drive further gains, potentially pushing gold beyond USD 4,000.

Investors have multiple avenues to gain exposure to these metals on the Saxo platform, whether through leveraged Spot FX, exchange-traded funds (ETFs), or commodity futures. For more information and guidance tailored to your investment needs, don't hesitate to contact your Relationship Manager.