Oct 6, 2026
1. Uncomfortable questions come with uncomfortable answers… so these types of questions are rarely asked, let alone answered.
2. No mainstream pundit dares to talk about the US rates line in the sand; nobody asks if there’s a number where the gold-rates narrative reverses, as it did in the 1970s.
3. Then, the narrative related only to real rates and inflation; if rates rose but inflation rose more, gold was a buy.
4. Now, the same narrative holds, but with a “bonus”; there’s an interest rate threshold that creates institutional panic about the government’s ability to pay the interest on its debts and...
5. That number could be as low as 7%, basis the ten-year bond.
6. Imagine a world where an average citizen’s credit card interest rate is 7%, the citizens have the power of taxation… and that low 7% rate bankrupts the citizens! That can’t happen but…
7. It’s the horrifying (and despicable) current state of not only the US government, but most governments of the world.
8. Gold was once called, “the money of kings”, but perhaps now it’s better termed as, “the money and government of savvy citizens around the world”.
9. For a look at the short-term gold chart. A double bottom is in play and MACD sports a bullish inverse H&S pattern.
10. That’s positive, but to build sustained wealth, investors need to focus on the daily and weekly charts. A completed three-wave dip from $4700 may mark the end of the correction.
11. Also, Stochastics (14,7,7 series) shows double bottoming action in the oversold zone, and there’s a positive divergence with the price.
12. The weekly chart is the most important chart of all. To view it. Gold is now trading in the $4200-$3941 buy zone. That zone isn’t just for buying gold.
13. It’s also for silver and mining stocks that move in sync with gold.
14. As governments stupidly race to take on ever-more debt, the interest payments are crowding out important items like schools, housing, and medical care.
15. In the United States, the government believes that if it uses lots of debt to buy lots of $1000 hammers, it can finally win a war. The Iran failure shows that’s a fallacy, and the latest jobs report fiasco suggests companies are beginning to feel the effects of inflation that is related to high energy prices.
16. The debt-obsessed government of Spain is also in trouble and in China about 25% of the nation’s banks are being closed.
17. My suggestion is to adopt the Eastern citizen approach to gold, meaning that investors should embrace ongoing accumulation of this mightiest of metals… until death do them part.
18. The big picture for gold is technically and fundamentally pristine, but what about the miners that extract it? A massive bull flag is in play and the target is the $170-$200 zone.
19. When the price was about $100, I noted that a pullback “to about $85” was needed to make the flag a real pattern… and that has now occurred.
20. For a look at the weekly chart. Excitingly, inside the monthly chart pattern is an inverse H&S bull continuation pattern.
21. What about the daily chart? Here, the inverse H&S pattern can be seen in detail. Note the orderly drop from the neckline to the potential right shoulder low…
22. It’s happening even while rates move aggressively higher!
23. Rates are enroute to the 7% “strangulation of the US government” zone.
24. At the same time, Hong Kong and Shanghai are working aggressively to move some price discovery from London and New York to Asia. In a nutshell, it’s a fabulous gold bull era, eagerly savoured by savvy citizens around the world!
Thanks!
