‘Gold remains the strategic allocation, while silver remains the tactical opportunity’ – Saxo Bank’s Hansen

By Ernest Hoffman – KITCO News

Oil-led inflation risks, not geopolitics, are driving near-term weakness in precious metals, and while gold’s pullback looks cyclical rather than structural, silver’s vulnerability to industrial demand and investment flows makes it more fragile, according to Ole Hansen, Head of Commodity Strategy at Saxo Bank.

Hansen noted that “rising energy prices, a stronger dollar, firmer inflation expectations and a renewed higher-for-longer view on US interest rates have together created a more challenging short-term environment for non-yielding assets,” which have driven gold prices to a three-week low.