Saxo Market Call Markets drop-kicked into September. What's going on?
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Sep 2, 2025 The recent surge in metals prices marks an end to summer lulls, but rising long interest rates are stirring unease in the markets. UK Gilt yields have reached levels not seen since 1998, prompting discussions about currency impacts and stock market reactions. Shifts in central bank gold holdings indicate a new trend as geopolitical dynamics evolve. Sweden's stable economy amidst global turbulence and the U.S. strategy to isolate Russia from China add layers to market complexity. Concerns about potential housing crises and consumer spending loom large.
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Lower Cuts Sparked Precious Metals Rally
- Gold and silver rallied as rate-cut expectations lowered the cost of carry and revived demand.
- Central bank buying and returning ETF accumulation amplified the move higher.
Seasonality Still Favors Precious Metals Weakness
- Historical seasonality warns September is usually weak for precious metals over the last decade.
- The current macro backdrop could still make this September different if central bank demand persists.
Central Banks Shift Toward Gold
- Foreign central banks are increasing gold reserves, overtaking some traditional reserve allocations.
- This trend reinforces structural demand beyond short-term investor flows.