Don Durrett - goldstockdata.com@DonDurrett
Friday Recap
AU: $4596 ($4508 - Last Week)
AG: $90.04 (79.84)
HUI: 802 (763)
DXY: 99.1 (98.9)
S&P: 6940 7(6963)
10-Yr: 4.2% (4.1%)
Oil: 59 (58)
The S&P remains flat for the month, hovering near its ATH. Gold, silver, and the miners continue to trend higher. Since January 1st, gold is up $300 and silver is up $20. Wall Street is convinced the economy is strong, so the S&P is likely heading above 7000. That's great news for gold and silver, which will follow. It's hard to be bearish gold or silver in the near term. The Q1 rally will continue. In fact, the pressure under gold and silver only seems to be increasing. Trump is shaking the global geopolitical tree, creating uncertainty. Plus, silver inventories are getting tight as strong demand continues.
As I always remind you, this is all about the S&P 500, which represents the US economy and bond market. Gold will follow the S&P higher, and silver will follow. At some point, the S&P will correct, pushing down gold and silver. The question is, how many false breakdowns will we see in 2026, and how deep will each be? My guess is that there will be a few, with the first in either February or March, and then a deeper one in April, and potentially two more before the midterms. All of these will be buy-the-dip opportunities, as investors think gold and silver are overvalued.
For 2026, I initially thought the S&P would top out before May. I now think it is more likely that the S&P won't top out until sometime in the summer. Why? The Mid-Terms. The economy is likely to linger until we get closer to the November election. So, we will get a few corrections in 2026, but the deep one probably won't come until Q4. The first half might be turbulent, but not nearly as turbulent as the second half. August, September, and October look to be the most turbulent months for the stock market. If we enter August and the S&P is sub 6000, then Katy bar the door.
I still believe that 2026 is the final year of American Greatness. When this year is over, the world will worry about our future, and New York City will no longer be the financial capital of the world. The downfall of America will have begun for all to see. It will be apparent that the American Empire has ended. Get ready for massive change. We all know how this ends: economic turmoil. Guess who wins? Got Gold and Silver?
