June 27, 2026
1. Are global government fiats ready for their next tumble of significance against supreme money gold?
2. For some key insight into the matter. In the big picture, all fiats clearly fail against gold, but they do have occasional rallies.
3. The current price action is partly technical; gold surged from about $1800 to $5600 without much of a pause. Gold is consolidating that move and the consolidation can take months or even years to complete.
4. Fundamentally, the consolidation has been enhanced by the Iran war. That’s because many central banks halted their buy programs for gold and some began selling.
5. Nations were hammered with oil shortages. Economic depression and even mass starvation became possible with the closure of Hormuz.
6. There are still skirmishes, but Hormuz is basically open again and central banks are eager to resume their gold buying, to protect against the ongoing government weaponization of fiat, especially US fiat.
7. Some hedge funds have studied lunar cycles to see if there is some correlation with markets. These cycles are best used in conjunction with other technical tools.
8. Yesterday gold traded near my $3900 buy zone and a full moon occurred.
9. That happened with weekly chart Stochastics (14,5,5 series) also dramatically oversold.
10. In a nutshell, there’s no guarantee that gold made a big low yesterday, but what can be said is that tremendous value (fundamental, technical, and cyclical) is offered to investors here.
11. Some amateur investors thought that the Iran war and a dip in the gold price was linked to the possibility of the Fed raising rates… and since gold pays no interest (in the West), it needs to fall against interest-yielding fiat.
12. That’s a silly narrative that is promoted by mainstream media, but I can assure gold bugs of the world that the big driver has been central banks and it’s only a matter of time before these titans begin buying afresh.
13. Another group of “titans of ton” are the citizens of India. The oil shortage caused the government there to hike taxes on gold and it urged citizens to buy no more gold for a year.
14. That’s creating a black (free) market, but with Hormuz open the government could roll back those hideous taxes, opening the door to another 50-100 tons of monthly demand for gold.
15. Modest patience is all that is required of investors. In time, the Fed chair and the US president are more likely to look like Emperor Nero and a twin money-debasing brother than “world leaders”.
16. What about silver? Well, where gold goes, so goes silver. It’s almost surreal to think that a move just back to the May highs near $89 is roughly a 50% gain from here but…
17. That’s how much action “Prince Hi Ho” brings to the metals market table.
18. At this point, silver bugs of the world may feel like repeating the words of the legendary Jim Sinclair, “I’m compelled to buy!”.
19. My suggestion is to buy some now, and more if there’s a further dip to the massive support zone at $50.
20. Buying silver in the $60-$50 zone now is likely one of the wisest decisions a silver bug could ever make.
21. What about the miners? Some bull wedge “action” is in play and it’s apparent on the gold chart too.
22. At the same time, a bear wedge is developing on the Dow chart. July is typically a stellar month for the stock market but…
23. August, September, and October can be horrific. A number of scenarios are possible, including a resurgence in inflation and an “empire with no clothes” Fed that talks hawk but takes little or no rate hiking action.
24. This potential divergence between gold and the US stock market, if oriented around this scenario could see both GDX and silver bullion rise to new all-time highs!
Thanks!
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.