Daniel Ghali, a senior commodity strategist at TD Securities, said that even after the tariffs and trade situation are resolved, it is unlikely that a large amount of gold and silver will flow from the UK to the US again. Although gold prices are expected to continue hitting historic highs, the pattern of silver is even stronger.

In an interview on February 12th, Ghali stated that the strengthening of the US dollar has always been unfavorable for commodities, including precious metals, but the situation is now different.

He said, "The current pattern of gold is exceptionally strong, and the best way for gold investors to say this is' I win no matter what. 'In this situation, the strengthening of the US dollar is actually enough to trigger what we call' mysterious buyer activity ', which mainly comes from Asia, central banks, retail investors, and institutional investors, ultimately linked to currency depreciation hedging

Ghali stated that this situation has been ongoing for over two years. He said, "When the US dollar is strong enough, it actually has a counterintuitive impact. On the contrary, if the US dollar weakens, US interest rates fall, and macro funds now have some bullets to use, they will increase their holdings of gold in this situation. So in any case, I win

But the current demand situation in Asia is actually quite different from 2023 and 2024, as gold ETFs in major Asian countries no longer support a rise in gold prices.

Ghali said, "What we saw last week was a significant increase in trading volume on the country's gold exchange. Last year, this was ultimately related to the very strong buying activity of retail investors in the country's gold ETFs. This year's situation seems to be different, and it is currently unclear what is driving this trend, but we believe that the ultimate driving factor is currency depreciation pressure

Although TD Securities believes that the current environment for gold is very favorable, he said that the environment for silver prices is even better.

He said, "We believe that the pattern of silver is exceptionally strong, and this is the most convincing case in today's commodity market

Ghali added, "This is not the silver squeeze you've heard of, this is the silver squeeze you can buy. What happened here was an artificial catalyst that forced London's inventory to consume at an abnormal rate, while the inventory in the United States began to grow at an incredible rate. The uniqueness of silver is that the United States happens to be an important end-user destination, and silver happens to be in a structural shortage state for at least four consecutive years, and we're not entirely sure if the 'intangible inventory' on the ground will return to the market at current prices. In our view, in order to stimulate the accumulation of inventory from unconventional sources, prices actually have to rise

He emphasized, "This is a very strong silver price trend, and we believe that silver prices will eventually catch up with the exceptionally strong performance of gold last year.