Record-high U.S. gold stockpiles of 39.7 million ounces, worth approximately $115 billion, have been amassed in exchange warehouses due to a tariff-driven surge in U.S. gold prices
Through many years of frustration among gold bugs due to the failure of gold stock prices to leverage the gold price in a positive way, there were very clear reasons for that failure.
Gold is back over $2,900, and we’d like to see gold hold that level. New lows below $2,844 spell trouble, so we do not want to see that. All signs point to higher gold prices.
European bond yield trends and German bond yield trends will impact gold and silver. Copper and non-ferrous metals will be very volatile, with an overall bullish trend.
Gold had settled as high as +22.2% above said average; at present ’tis still a lofty +18.4% above same. So we ought not be surprised should Gold further subside.
Lambourne writes: "Such a low level of swaps was the expectation if we were moving toward a time when gold was going to be revalued, as it always seemed sensible to eliminate the swaps before a reset."
Valuations remain deep into dangerous bubble territory, heralding a serious bear market to normalize stock prices with earnings. Despite soaring 27.2% in 2024, gold remains the most-underallocated asset.
Overall, the market development remains strongly bullish, and we expect market participants to want to see the round psychological mark of USD 3,000 as soon as possible.
