Gold is currently experiencing a “systemic reset.”
The precious metal experienced a kind of mania from mid-2025 to early 2026, more than doubling in price from $2,600 per ounce to over $5,600 per ounce. It’s critical to note that was not just a “weak $USD” story either; gold exploded higher when priced in every major currency: the U.S. dollar, the Euro, the Yen and the Franc.
Nothing goes straight up or straight down in the markets. And after a run like that, gold was due for a correction. And that is precisely what has happened: since February/ March 2026, gold has corrected. And again, this price action has taken place when priced in every major currency: the $USD, Euro, the Yen, and the Franc.
By the look of things, this period of weakness should be ending soon. As Tavi Costa notes, the only other time gold has fallen for 81 days was during the Great Financial Crisis! In fact, things are so bearish for gold and gold-related stocks that two weeks ago the Gold Miners Bullish Percent Index hit ZERO. Here again, we seen sentiment matching that of the Great Financial Crisis!
This situation won’t last long. The macro situation that ignited the initial explosive run in gold has not changed. Globally, governments continue to run large-scale fiscal deficits. Central banks will soon have no choice but to monetize these debts. Case in point, the U.S. Federal Reserve is already running a $40 billion per month QE program at a time when the economy is still growing!
Indeed, if you need any evidence of what’s coming, consider that central banks, the entities that can literally print money at will, just bought 244 TONNES of gold in the first quarter of 2026. What do they know that others don’t?
