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

Saxo Bank strategist Ole Hansen says near-term weakness in precious metals is driven primarily by rising oil prices, a stronger dollar and higher-for-longer US rate expectations, which have pushed gold to a three-week low. Oil (Brent above $111) is amplifying inflation risks and delaying Fed rate cuts, pressuring non-yielding assets. Hansen views the setback as cyclical: gold’s long-term bullish drivers remain intact and its 200-day moving average (around $4,250) is key support. Silver is seen as higher-beta and more vulnerable to industrial demand swings and fickle investment flows; the gold-silver ratio (~62 vs long-term ~70) implies silver may need fresh catalysts to outperform. Hansen expects gold to outperform silver once energy supply normalises (e.g., Iran conflict resolution) and recommends gold as a strategic allocation with silver as a tactical, higher-risk opportunity.