“While near-term volatility is likely to persist,” Hansen notes, “this move is best understood as a positioning-driven reset – not a fundamental turning point.”
Zoom out, and the macro backdrop remains stubbornly supportive.
China Is Making Its Move – Quietly
One development stands out.
Chinese regulators have reportedly advised domestic banks to rein in their holdings of U.S Treasuries, citing concentration risk and heightened volatility. Institutions with large exposure have been encouraged to pare positions, while new purchases have been quietly discouraged.
Chinese banks held roughly $298 billion in dollar-denominated bonds as of September. The concern is straightforward: heavy Treasury exposure leaves balance sheets vulnerable at a time when the “risk-free” status of U.S debt is being openly questioned.
European money managers are voicing similar concerns, while the U.S dollar has slid to its weakest level since early 2022 amid easing rate expectations and mounting fiscal anxiety.
All of this points in one direction. Less U.S Treasuries. More Gold.
This catalyst alone could send Gold prices in one direction from here.
And that’s higher, a lot higher!
China’s 15-Month Buying Spree
Fresh data confirms that the People’s Bank of China has extended its Gold purchases for a fifteenth consecutive month, reinforcing official demand that underpinned the bull market prior to the recent sell-off.
Gold holdings rose to 74.19 million ounces by the end of January, up from 74.15 million a month earlier. The value of China’s Gold reserves surged to $369.6 billion, reflecting both continued accumulation and higher prices.
“This is an accumulation window,” Hansen says. “Supply is transferring from leveraged speculators to long-term capital. When liquidity shifts, weak hands sell. Strong hands accumulate.”
The Path to New All-Time Highs Reopens
Over the past 15 years, The Gold & Silver Club has built a reputation as the most accurate forecaster of Precious metal prices, a record well documented across leading financial publications and institutional research reports. The firm’s proprietary models have consistently pinpointed major turning points in both Gold and Silver – earning GSC recognition as a trusted authority among institutional investors and private wealth clients alike.
The Gold & Silver Club’s proprietary models now project a base-case target of $6,100 an ounce within the next 12 months – a level Hansen describes as conservative.
Wall Street forecasts are converging rapidly. UBS, JPMorgan and Wells Fargo now expect Gold to reach $6,200 – $6,300 by the end of 2026. From current levels around $5,033, this target implies a 25% upside over the next ten months.
For investors and traders alike, the message is becoming harder to ignore.
“Gold has rarely looked this asymmetric,” Hansen concludes. “Yes, volatility is elevated. But in the midst of chaos lies opportunity. Dips like this aren’t a warning – they’re an invitation. The real question is how much longer this window stays open before the next historic breakout begins.”
