Gold Holds Steady Above $4,000 as Investors Move Past Inflation Concerns – Saxo’s Hansen

Gold maintains its position above the $4,000 per ounce mark even as renewed Middle East tensions push Brent crude above $80 a barrel. Ole Hansen, Head of Commodity Strategy at Saxo Bank, observes that the market’s consolidation reflects investors becoming less aggressive in selling amid inflation worries, factoring in longer-term effects of the energy shock.

Hansen notes the resilience around $4,000 suggests short-term inflation fears may yield to concerns over economic activity. He highlighted that gold’s defensive attributes could dominate if worries about higher real rates and potential Fed hikes ease.

The latest CPI data revealed a 0.4% monthly drop in consumer prices, with annual inflation easing to 3.5% from 4.2% and core inflation to 2.6% from 2.9%. Hansen anticipates no Fed rate hike this year, projecting gold to trade in the $3,950–$4,200 range, where a sustained break above $4,200 would signal focus on broader economic impacts.