Saxo Bank: Gold Could Reach $5,000 in a Year

Striking Gold Prediction from Saxo Bank

Saxo Bank Commodity Strategy Head Ole Hansen joined Bloomberg HT to evaluate the fluctuations in gold prices, making noteworthy statements about demand and the safety haven perception.

Reasons for the Increase in Gold Investments

Hansen emphasized the importance of examining why investors are purchasing gold. "In particular, concerns about the Fed's independence and global uncertainties are directing investors towards gold," he stated. Hansen also noted that it is essential to understand the backdrop of the 50% price increase in gold.

Market Situation and Price Expectations

Hansen expressed that he believes current gold prices could rise to $4,150, indicating that this level may serve as resistance. "If Chinese investors return to the market, the trends in gold could change. However, I believe that most of the rally in gold has already occurred this year," he said.

Thoughts on Inflation and Monetary Policy

Hansen emphasized that the political situation in the U.S. and worldwide will not change and predicted that inflation will be persistent. "With a decrease in interest rates, reaching $5,000 is no longer considered an extreme point," he stated.

Profit Realization and Upward Trends

Hansen noted that investors are monitoring the movements in gold and should approach profit realization carefully, stating that he anticipates the upward trend in gold to continue during this process.