← Benjamin Cowen

Gold: Dubious Speculation

2026-10-27

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17m

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12 min read

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Gold is still near 4,000, but the setup is framed as a dubious late-cycle advance with seasonality, a stronger dollar, and another Fed hike all threatening a 2026 correction. The pattern under review is a Q1 low, a summer low, then a possible Q4 low; July may have been the low, but 2018 and 2022 both went lower before year-end. The comparison to 2018 is central: gold’s year-to-date ROI was 944 then versus 928 now, and gold only really accelerated in December after the dollar weakened. The near-term risk is a December-style rate path and a dollar bid, with uncertainty that the Fed could still need to hike again in 2027.

  • Gold is still around 4,000 after the parabolic advance that began in 2025.
  • Gold has tended to print a Q1 low, a summer low, then another low in Q4; this year’s sequence has a March wick low, a July low, and a possible Q4 low still forming.
  • South Korea’s market showed the same rough cadence: a March low, a higher high, a July low, and now a possible Q4 low.
  • Bitcoin previously followed a bear-market pattern of a Q1 low, then a June/July low, then a Q4 low.
  • More than a year ago, gold was expected to correct in 2026 as digestion after the 2025 parabola.
  • A rising dollar has been treated as bearish for gold, and the 2026 metals correction thesis was tied to a higher DXY.
  • In 2018, when the dollar rose, gold fell; gold’s year-to-date ROI at this point in 2018 was 944 versus 928 now in 2026.
  • Gold did not really start to pick up steam in 2018 until December.
  • The midterm-year average says gold normally bottoms around July, with an overlay including one standard deviation; July was a potential low, not necessarily the final low.
  • In the last two midterm years, 2018 and 2022, July was not the low: gold bounced, then dipped a little lower before the real low arrived.
  • In both 2018 and 2022, gold started showing strength before December.
  • Silver already broke below its prior July low, which is why gold may still need to test a lower low even though silver’s move does not force gold to do the same.
  • Silver is described as possibly back-testing a breakout level from long ago.
  • Another rate hike is the near-term headwind for gold, with the dollar expected to keep catching a bid for the rest of the year.
  • Fed odds show about a 90% chance of holding rates steady at the next meeting tomorrow, but over an 80% combined chance of rates rising to 4.25% by December, matching the 2018 playbook of a September hike, a pause around the midterms, then another December hike.