Feb 24, 2026
1. Almost all big bank analysts believe the fundamental case for owning more gold is strengthening. A few call gold “divorced from fundamentals” and view it as a pure momentum trade, but they also forecast more trouble ahead for fiat versus gold.
2. While forecasts like $6000-$9000 are now the norm… what about numbers like $20,000, $50,000, and $100,000? What could drive gold to these exciting levels?
3. The answer is obviously increased investor interest in gold. The average Western citizen has allocated only about 1% of their collapsing fiat money to gold. Money managers may hold as much as 3% on average, but that’s still a small amount. Morgan Stanley suggests both retail investors and institutions should raise that to 20%... which is the norm for savvy Asians in the East.
4. The big question isn’t whether an across the Western entity board allocation of 20% would drive gold to much higher prices, potentially even to $100,000… the key question is what would be the driver (or drivers) that could bring this 20% allocation to life?
5. For some key insight into this exciting issue. The outrageously overvalued US stock market functions as an Orwellian indicator of the average citizen’s financial health.
6. If it were to collapse and do so as inflation begins a new upwards surge (highly likely), money managers could begin to aggressively rotate out of the stock market… and into gold.
7. What about the government’s scheme to use tariff taxes to replace income taxes? Well, for 2025, the government’s tariff taxes (about $200 billion) only amounted to about 5% of its income tax revenues (about $4.5 trillion). Clearly, the scheme of replacing income tax with tariffs, while noble, is dead.
8. Unless the government reduces its expenditures by about 70%, there is no hope of making that swap work… and it’s continuing to aggressively increase its debt and spending instead of reducing it.
9. Workers are being replaced by AI and robots. Eventually there will be UI (universal income), but in the early stages of the transition, there will be mass unemployment.
10. All these disturbing themes become magnified during a stock market crash.
11. Today, the US president gives his state of the fiat union address, and citizens with no gold will listen attentively.
12. Gold is the financial backbone of the world’s most savvy citizens, and for a exciting technical view of the technical action. It just burst above the significant resistance zone of $5100, turning that into modest support. The longer gold stays above that price, the stronger this support becomes.
13. Note the bullish buy signal in the momentum zone (about 50) for Stochastics (14,7,7 series), and the uptick for RSI, also from about 50. There’s nothing that fiat broke that can be fixed with today’s fiat-oriented government speech… and that opens the door for gold to surge to the $5600 area highs.
14. In early 2024, I suggested that the breakout above $2200 could see RSI and Stochastics (14,5,5 series) oscillate between overbought and the momentum zone of 50… and do it for several years.
15. This projected bullish action is in play now, and there’s also an emerging range trade between $4400-$5600. That targets $6800.
16. The technical action is very positive; Stochastics is turning up from the oversold zone and RSI is rising from its momentum zone.
17. Years ago, I targeted April 2026 as the time frame for a potential pause in the bullish action, and that continues to be likely. Silver is beginning to rise above the shoulders of the bearish H&S top and a rally up to $122 looks to be next.
18. What about the miners? Well, most money managers can’t buy bullion, and they like the leverage that mining stocks potentially give them.
19. Double-click to enlarge this spectacular CDNX chart. A myriad of technical green lights are flashing for mine stock enthusiasts. Volume is incredibly bullish, and the price rose above the October high.
20. A nice Stochastics buy signals is in play, RSI looks awesome, and MACD (20,40,10 series) is about to flash a big buy signal too. In a nutshell, it’s time for investors to jump back into the pool!
21. What about the seniors? They also look fantastic, and to view a key chart. Double-click to enlarge this “Wow Factor” GDX chart. From a technical standpoint, it’s going nose to bullish nose with the CDNX!
22. My senior gold stocks buy alert issued at gold $4400 is already a big winner… and now there’s a potential buy signal on the key MACD (20,40,10) series indicator.
23. That reinforces the great technical action for the Stochastics and RSI oscillators.
24. The state of the global gold nation union address is clear: all technical lights are green and an exciting gold bullion queen is flashing the world’s greatest sheen!
Thanks!
Cheers
