Gold outruns itself

Wednesday 26 August 2026

TME with the charts.

Short term stretched

Gold has gone vertical, leaving several of its usual macro relationships behind. The question now is whether this is simply an overshoot that needs correcting, or a sign that the structural gold trade has entered a new phase. Near-term risks are building, but getting outright bearish may still be dangerous.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.