Strategist's opinion: Gold price may hit $5,500, silver deposit correction risk

With the price of gold remaining above $5,000 an ounce, the price of gold has risen by nearly 22% this year, marking its best start to the year since 1980.

Although gold prices are still well supported and can move up sufficiently, one analyst cautioned that the resilience of the global economy could put some pressure on gold prices.

Ole Hansen, head of commodities strategy at Saxo Bank, said in a recent note that speculative money could push gold prices to $5,500 an ounceTMGMForex PlatformFrom the market observation, this expectation is in line with the current market sentiment.

"The main factors driving the rise in gold prices are well known to the market, mainly due to concerns about the continued rise in fiscal debt, the weakening of the dollar in the context of changes in the international policy environment, and lingering inflation expectations. However, it is important to note that these concerns have not yet been fully translated into reality. Although US fiscal debt is rising, the market is currently mainly digesting it through a steepening of the yield curve, and investors are demanding higher long-term risk premiums. Although the dollar has weakened, it has not collapsed, and the regional changes in the international economy have not further escalated into a more volatile situation."

Although demand for safe havens may gradually cool, he does not expect a major correction in the future.

He said: "We think,With broader structural support for gold remaining solid, the market is more likely to experience a prolonged consolidation than an imminent major correction.”

However, Hansen expressed more concerns about silver.The grey metal has had a strong start to the year, its best since 1972, rising more than 60% in the first month of 2026 alone.

"The rise in gold has been relatively orderly and has not shown any obvious bubble characteristics, but silver has clearly entered bubble territory," he said. "The influx of retail funds, the increase in speculative positions and the fear of missing out on the market have been the main drivers of higher silver prices, keeping silver at historically high prices relative to gold and platinum."

The historically rapid rise in silver could trigger significant demand dampening in the industrial sector, which accounts for about 60 per cent of annual silver demand, Mr. Hansen said, adding that increased volatility could also raise the specter of disorderly trading.

He said, "Looking to the future,As industrial demand growth slows and global consumers take advantage of the current highs to sell back long-held silver bars, jewellery and silverware after a sevenfold rise in silver prices over the past decade, we expect the supply-demand balance to gradually improve, which will weaken its support for silver prices. For investors seeking a strategic allocation to hard assets, holding on to gold remains the better option, as the fundamental demand of central banks will continue to provide protection against the risk of a sharp correction in gold prices.”

From the perspective of the TMGM foreign exchange platform, gold and silver currently exhibit different rhythms, and investors need to make a rational layout according to their own risk appetite.