Gold: Follow the Signal, Not the Noise

Yesterday, the gold price dropped below the 50-day moving average for the first time in 142 days. The sell-off ended one of gold’s longest periods of relative strength on record.

While there may be a short-term breakdown in gold prices, the signal remains intact:

China has officially added to its gold holdings for 18 consecutive months. (Source: The Kobeissi Letter)

China is among the leading buyers of gold. Currently, the People’s Bank of China owns over 50 tonnes, valued at $371 billion. At the same time, China is unloading U.S. Treasury debt.

That’s the signal.

Yesterday’s sell-off in gold? Noise.

Gold is well off its highs, so it’s worth adding to your own stash right now. Ditto gold mining stocks, which have been hit harder than the rest of the market this week.

~ Addison

P.S. Later today in Grey Swan Live!, at 2 p.m. ET/11 a.m. PST, we’ll be joined by our natural-resources specialist, Shad Marquitz, for a prescient look at gold price volatility.

We’ll also be looking at the mosaic of natural resource opportunities in oil, energy, rare earths and other precious metals following the Iran bombing excursion.

We’re in the middle of an active shooting war in the Persian Gulf …Oil has surged. Gasoline and diesel prices are spiking…

And yet, the stock market is only slowly rolling over. And gold – typically a hedge against geopolitical uncertainty – is bucking expectations with a sell-off.

We’ll unpack what’s going on and the opportunities for investors today. Click here to sign up for the Grey Swan Investment Fraternity if you’re not a member yet.

Yesterday, the gold price dropped below the 50-day moving average for the first time in 142 days. The sell-off ended one of gold’s longest periods of relative strength on record.

While there may be a short-term breakdown in gold prices, the signal remains intact:

China has officially added to its gold holdings for 18 consecutive months. (Source: The Kobeissi Letter)

China is among the leading buyers of gold. Currently, the People’s Bank of China owns over 50 tonnes, valued at $371 billion. At the same time, China is unloading U.S. Treasury debt.

That’s the signal.

Yesterday’s sell-off in gold? Noise.

Gold is well off its highs, so it’s worth adding to your own stash right now. Ditto gold mining stocks, which have been hit harder than the rest of the market this week.

~ Addison

P.S. Later today in Grey Swan Live!, at 2 p.m. ET/11 a.m. PST, we’ll be joined by our natural-resources specialist, Shad Marquitz, for a prescient look at gold price volatility.

We’ll also be looking at the mosaic of natural resource opportunities in oil, energy, rare earths and other precious metals following the Iran bombing excursion.

We’re in the middle of an active shooting war in the Persian Gulf …Oil has surged. Gasoline and diesel prices are spiking…

And yet, the stock market is only slowly rolling over. And gold – typically a hedge against geopolitical uncertainty – is bucking expectations with a sell-off.

We’ll unpack what’s going on and the opportunities for investors today. Click here to sign up for the Grey Swan Investment Fraternity if you’re not a member yet.

Debts and deficits will eventually cause a crisis. Treasury Secretary Scott Bessent’s effort to help bail out the Japanese Yen this week is entirely motivated by self-preservation. The contagion signal flashing in Japanese bonds since late ‘25 is infecting the BOJ, which may be forced to sell U.S. Treasurys to stabilize its own currency.

The copper price is no doubt benefiting from inflation driven by money printing. But the doc don’t lie. Copper’s new all-time highs, while gold and silver still languish, are a sign the AI growth story is also that of the global economy itself.

Many miners were profitable with gold around $2,000 and silver near $50. At sustained prices closer to $4,000 gold and $60 silver, the arithmetic changes dramatically.

The stock market is getting an unexpected boost to kick off August, bucking the historically weak summer session for the U.S. stock market.

What’s happening? The Bank of Japan and the U.S. Treasury are making a coordinated effort to support Japanese yen; a move last attempted nearly 30 years in the height of the Asian Financial contagion (1998).

Many miners were profitable with gold around $2,000 and silver near $50. At sustained prices closer to $4,000 gold and $60 silver, the arithmetic changes dramatically.

The stock market is getting an unexpected boost to kick off August, bucking the historically weak summer session for the U.S. stock market.