InvestMacro

Gold has made impressive gains so far this year, but when it spiked up to touch $3500 in the middle of April it become heavily overbought which is why it then went into a rectangular consolidation pattern that has given time for the overbought condition to fully unwind, as shown by the MACD indicator on its 6-month chart below, and has also allowed its moving averages to catch up, especially the 50-day which has now fully closed the gap with the price.

Because there is still a considerable gap with the 200-day it means that there is room for the price to break down from the Rectangle and correct back towards or to this average. In attempting to weigh the probability of this happening versus the price instead breaking out upside from the Rectangle, we need to inspect the volume pattern and volume indicators, which normally provide valuable clues in a situation like this.

However, volume and volume indicators are no longer provided by Stockcharts for the metals but we can get around this problem by using a chart for the same time period for reliable gold proxy SPDR Gold Shares, whose chart is almost identical, which does show volume and volume indicators.

So, on the 6-month chart for SPDR Gold Shares, we see that, while the volume pattern is a little hard to decipher, the Accumulation line has continued to trend higher from the April peak as the price has tracked sideways and has even made new highs in recent days.

This is bullish and implies that, rather than breaking lower into a correction, GLD and thus gold itself will instead break higher into a new upleg. If it does break lower a likely scenario is that a short, sharp drop is followed by a rapid reversal to the upside.

Zooming out now to look at gold on a longer-term 6-year log scale chart we see that it broke out early last year from a big trading range to commence a powerful uptrend — an uptrend that remains very much in force, with the price still well above the lower rail of the channel — even if it broke down from the Rectangle shown on the chart above and dropped to the $3100 level it would not violate this channel.

On this chart, we can better see just how overbought gold got last April, hence the trading range that has since formed that we looked at above.

Zooming out again via a very long-term log-scale chart going all the way back to the start of the millennium, i.e., to the year 2000, affords us an overall Big Picture perspective.

This chart makes clear that the breakout early last year from the large trading range that started to form in the middle of 2020 actually marked the breakout from the Handle of a gigantic Cup & Handle continuation pattern that started to form as far back as 2012.

This is a truly enormous consolidation pattern that certainly has the capability to support a correspondingly big bull market and as we are only about 16 months into this major new bull market, it clearly has much further to run.

In conclusion, we are looking for a breakout from the current rectangular trading range that has formed from April into another major upleg. If gold should instead break down from this range and correct back towards or to its rising 200-day moving average and the lower rail of its uptrend channel, it should then reverse back to the upside into a vigorous uptrend.

Volume indicators are suggesting that the former scenario — a breakout into another upleg from the trading range without any further corrective action first — is more likely to prevail.

Throughout human history, great societies have constructed their wealth upon golden foundations — from Roman vaults and imperial Chinese treasuries to Spanish vessels during the golden age of exploration.

In our modern era, gold transcends mere ornaments or ingots; it represents global power dynamics, international reserve banking, and a stabilizing force against currency uncertainty. Within this unfolding narrative, my bold projection — $16,402 per ounce — reflects both historical patterns and calculated foresight.

Let me explain why precious metal markets are poised for an unprecedented upward trajectory, examining the evidence. . .

Financial Titan’s Resource Stockpiling

Investment legend Ray Dalio, who established Bridgewater Associates, consistently advocates for gold as protection against monetary devaluation and institutional vulnerabilities. His Bridgewater funds recently expanded physical gold holdings substantially, directing $319 million during the year’s first quarter alone.

His reasoning stems from historical understanding: tracking gold’s evolution. Dalio’s perspective aligns perfectly with our analysis: Gold’s thousand-year journey now intersects with dollar weakness, mounting international liabilities, and transforming global hierarchies. His guiding principle resonates: Gold exists “independent of any one nation’s economy.”

Wealthy Investors Securing Mining Interests

This precious metal pursuit extends beyond major investment firms. Ultra-wealthy individuals are claiming their stakes.

• John Paulson — renowned from the 2008 financial meltdown — anticipates $5,000 gold within three years. He’s invested $1 billion into Alaska’s Donlin Gold venture, targeting one of Earth’s richest undeveloped reserves. His analysis suggests that central banking institutions pivoting from traditional currencies drives this movement.
• Thomas Kaplan — mining entrepreneur and Donlin participant through NovaGold Resources Inc. (NG:TSX; NG:NYSE.MKT) — supports this optimistic outlook. His Kaplan Doctrine advises investing in premium, expandable deposits within secure jurisdictions. This pattern reveals a broader shift: Financial elites transitioning from passive bullion ownership to enhanced exposure via mining operations.

I’m thoroughly convinced my $16,402 price target isn’t mere speculation — it’s a calculated strategy.

Reserve Banks: Contemporary Gold Guardians

National reserve institutions propel gold’s market ascension. A January 2025 HSBC survey spanning 72 central banks discovered over one-third planned to boost gold reserves — with none indicating reductions.

Bloomberg confirms: “Central banks will keep buying gold in a push to diversify away from paper currencies amid political and economic upheaval.”

BRICS nations (Brazil, Russia, India, China, South Africa) spearhead this accumulation. Russia has amassed reserves since its 2022 asset confiscation — a cautionary lesson about traditional currency risks. China and India, culturally connected to gold, have expanded both national reserves and domestic bullion demand. As one market observer noted, gold increasingly serves as the “de-dollarization tool” against Western financial influence.

BRICS Alliance and Gold-Centered Economic Systems

The BRICS coalition represents more than trade partnerships and political alignment — it signals monetary strategy evolution. India, China, Russia, and additional members explore de-dollarized trade settlements, potentially incorporating gold-backed frameworks. While a formal “gold-based currency” partnership remains aspirational, the momentum grows undeniably.

BRICS participants actively expand gold reserves for financial security. A popular phrase circulates among their strategists: “When U.S. paper whispers, BRICS gold roars.” As international power structures evolve, gold assumes a transformative role in global finance.

The Weakening Foundation: Diminishing American Currency

The inverse relationship between gold and dollar values follows predictable patterns — yet accelerates now. The dollar confronts:

• Exploding federal obligations (approaching 140% of GDP)
• Persistent government shortfalls
• Federal Reserve independence challenges, heightening inflation worries
• Recurring international commerce disputes, undermining dollar confidence

These circumstances create ideal conditions for gold’s ascendancy. Our $16,402 forecast depends on continued dollar deterioration — a narrative seemingly shared by Dalio, Paulson, and monetary authorities worldwide.

Eastern Hemisphere’s Consumer Gold Enthusiasm

Asia — the global gold epicenter — maintains impressive momentum. Singapore Bullion Market Association reporting emphasizes regional consumer appetite. Yet our pathway toward $16,402 isn’t fantasy—it’s a narrative where:

Our $16,402 projection captures gold’s multifaceted convergence, representing more than mere valuation but fundamental significance. Amid currency vulnerability and global transformation, gold transcends simple hedging — it embodies historical continuity.

Now, considering gold’s trajectory toward $16,402 per ounce (many analysts project even higher valuations), NatGold Digital Ltd. represents exceptional opportunity.

Consider this crucial point: As gold appreciates, its fundamental worth increases. However, extraction expenses remain relatively stable, meaning NatGold token values will skyrocket dramatically . . . alongside your investment returns.

Let me elaborate…

How NatGold Tokens Enable Ownership Before Wall Street’s Discovery

Imagine obtaining shares in America’s subterranean gold wealth — before extraction begins. Imagine preceding Wall Street, exchange listings, and media coverage. And imagine this investment representing not just precious metal . . . but American prosperity itself.

This embodies NatGold Tokens — pioneering blockchain-secured gold certificates directly linked to verified, untouched, domestic gold deposits within American borders. This isn’t conventional stock ownership, exchange-traded funds, or another digital currency. It represents digital gold’s evolutionary leap — and following recent American economic policy shifts, could soon become central to national financial strategy.

Presidential Initiative: Establishing $12 Trillion National Investment Fund

Earlier this year, Executive Order 14241 received presidential authorization, enabling development across 640 million federal acres containing approximately $100 trillion in untapped mineral resources.

This encompasses substantial copper, uranium, rare earth elements, and crucially: gold reserves.

The presidential vision?

Creating an American Sovereign Wealth Fund utilizing tokenized natural assets — finally monetizing underground national treasures without decades-long permitting delays.

Simply stated, America is beginning to digitize its inherent wealth, with NatGold pioneering this transformation.

Digitizing Inaccessible Resources: Major Deposits Nationwide

For generations, America has possessed some earth’s most valuable — yet unavailable — gold deposits.

• Northern Dynasty Minerals Ltd.’s (NDM:TSX; NAK:NYSE.MKT) Pebble Creek (Alaska) — Among the world’s largest undeveloped gold-copper resources, delayed through environmental regulatory challenges.
• Nova Gold Resources Inc.’s (NG:NYSE) Donlin Gold (Alaska) — Contains over 39 million gold ounces, with regulatory hurdles preventing development across decades.
• Ruth, Nevada — Premium gold concentration zone with billions in buried assets, largely abandoned through outdated extraction regulations.

These represent merely several “stranded resources” NatGold aims to unlock, not through physical extraction but digital tokenization. Each NatGold Token is supported by an authentic geological assessment verified through NI 43-101 protocols, providing token holders with a legal interest in these assets. This represents gold ownership without equipment, permits, or litigation, and zero environmental impact.

Gold: Returning as American Monetary Foundation

Since 1971, American currency has operated independently, without gold backing. Yet historical patterns often circle back. With global debt expansion, persistent inflation, and competing economies like BRICS planning gold-backed currencies, America quietly reintroduces gold into economic discussions.

Presidential conversations have included potential new gold standards — utilizing blockchain technology. Consequently, gold ownership becomes not merely prudent, but potentially fundamental to the American fiscal framework. Through NatGold Tokens, everyday investors participate before institutional recognition.