Gold has returned to the trend of setting a new record high (almost) every day.
Sure, it's taking a break today, having dropped a few dollars after a torrid streak over the past week.
In fact, last week we were excited that gold was approaching $2,800. Now the metal has $2,900 directly in its sights.
I think it's going to go much higher in this trend. Frankly, it seems to me that gold is now targeting the magic $3,000 level.
As for why gold is soaring while other markets are falling or faltering, that's an even more interesting and compelling story.
Gold "wants" to go higher
A powerful sign of a bull market is when seemingly bearish news or data is interpreted in a bullish way by investors.
As I have said numerous times over the years, and particularly during this year-long gold rally, it is times like these when gold seemingly "wants" to go higher.
That is exactly where we are now, at a time when not even a strong dollar or a rise in Treasury yields can stop gold's upward trajectory.
So what's really behind this latest movement in metal?
Well, that tariff mess, which seemed to be the reason behind the gold price jumps earlier this week, came and went in a flash. So, we'll have to dig a little deeper to see what investors are really worried about.
There is a veritable tsunami of Treasury debt about to hit: nearly $10 trillion in Treasury securities that will have to be rolled over in 2025, a total far in excess of any in history.
This is a ticking time bomb that Janet Yellen gleefully left for President Trump's new Treasury Secretary Scott Bessent. Good luck to him... and good luck to investors around the world when this bomb goes off in the coming weeks and months.
The bottom line is that the Federal Reserve and the U.S. Treasury are caught in a classic debt trap, in which the federal debt is simply too large to manage at current interest rates.
Bond investors realize this, see the massive avalanche of Treasury issuance coming and are calling for rates to rise further in anticipation.
There is simply no way out. And now, after 45 years of ever-easier money and ever-increasing debt, it is time for accountability.
Once again, investors around the world are taking notice. As a result, we are seeing an unprecedented flood of demand for physical gold in London and New York: the vaults of the London Bullion Market Association and the Bank of England, as well as the Comex, are emptying.
The waiting time for delivery from the Bank of England has gone from days to weeks, placing the serious institution in technical default of its obligations.
These are the reasons why gold is rising right now and why the metal wants to go much higher.
Brien Lundin, Money Metals