I have recently noticed that movements in precious metals prices have begun to attract significant attention in the markets, especially as global uncertainty continues to intensify. Jonny Tefvis, a precious metals analyst at UBS, has offered an important analysis of what is happening in the market right now.

The story here is that investors—whether individuals or institutions, or even central banks—have started increasing their gold holdings as a way to hedge against uncertainty. Jonny believes this demand for diversification is the main driver behind the current rise.

Based on Jonny’s analysis, gold still has strong bullish momentum during this period. If concerns about the Federal Reserve’s independence continue to escalate—which is a real possibility—we may see the gold price break through the $5000 per ounce level in the first half of the year.

Silver is also part of the picture. Jonny expected that silver would benefit from the rise in gold, and challenged its price to reach the $100 per ounce level this year, especially as the gap between supply and demand is narrowed.

As for copper, the situation is slightly different. Demand is increasing due to a shift in the energy sector, making the supply-demand balance tighter. It is expected that we will also see an increase in average prices there. Overall, Jonny is painting a bullish picture for precious and base metals in the near term.