Technical Analysis (June 11) US$, - SPAUF Spanish Mountain Gold Ltd

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Jun 11, 2026 at 9:02 AM 133

Technical Analysis (June 11)

US$, GOLD, XAU, SPA, SPAUF juxtaposition

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A PERFECT STORM is in incubation, when the stochastic Indicators in both daily and weekly chart cross up synchronously, you have a firework.

1571666805_USGOLDXAUSPASPAUFdailyandweeklyjuxtaposition.jpg

1571666805_USGOLDXAUSPASPAUFdailyandweeklyjuxtaposition.jpg

https://investorshangout.com/images/MYImages/...sition.jpg

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Spanish Mountain Gold was in dormant during the 2025 stampede, 2026 will be a bonanza year for SMG shareholders. Share price under 30 cents will be history soon, share price under 80 cents will be history by the Fall.

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https://investorshangout.com/images/MYImages/...M16yrs.jpg

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US inflation rate surged to 4.2% in May due to high energy cost amid the US-Iran war.
https://tradingeconomics.com/united-states/inflation-cpi

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The Federal Open Market Committee (FOMC) will hold its next interest rate decision on June 16–17, 2026. The target federal funds rate is widely expected to remain unchanged at the current 3.50% to 3.75% range. Strong job growth, persistent inflation, and rising energy prices have pushed rate cuts off the table for now.

But fear of imminent interest rate hike by the US Federal Reserve induces switching of investment funds from gold to US Dollar, fueling the rally in the US Dollar Index. But Trump predicts oil price will "drop like a stone" when the war is over and there will be no rate hike. When that happens, gold price will skyrocket, taking out the all time high of US$5,589 on January 28 and will surge towards US$6,000 in the second half of 2026.

Fundamentals supporting strong gold price:

Gold is extremely scarce, with just 219,890 tons extracted from the Earth throughout human history, compared to around 1.7 million tons of silver. China and central banks around the world have been hoarding up gold, every dip is a buying opportunity for them.

The structural bull case for gold is anchored by persistent macroeconomic risks and structural shifts. Key drivers include aggressive central bank purchases (led by emerging markets diversifying away from the USD), massive sovereign debt loads, and ongoing geopolitical tensions. These factors combined keep the floor strong for the precious metal.

Central Bank Accumulation: Global central banks continue to heavily purchase and hoard physical gold as a reserve asset to reduce reliance on the US Dollar.

Persistent Inflation Risks: While central banks attempt to navigate rate cycles, the backdrop of ongoing structural deficits and elevated living costs makes gold a premier hedge against currency debasement.

Sovereign Debt & Fiscal Concerns: High structural annual deficits (e.g., in the US) and ballooning global debt-to-GDP ratios erode fiat currency value and consistently push investors toward safe-haven assets.

Geopolitical Uncertainty: Ongoing trade concerns and regional conflicts drive consistent safe-haven demand from both institutional and private investors.

Lower Real Yields: When central banking authorities pivot to rate cuts, real yields historically decline, which lowers the opportunity cost of holding non-yielding assets like gold.

Leading institutional and private bank forecasters, such as J.P. Morgan Private Bank and World Gold Council, point to these underlying trends as reasons why the secular bull market remains intact despite short-term volatility.

US national debts
https://tradingeconomics.com/united-states/government-debt

Very likely Spanish Mountain Gold will be selling its gold at US$8000 per ounce (CAN$10400). The United States holds 8,133.46 metric tons (approx. 261.5 million troy ounces) of gold reserves, if US government is to pay off its 39 trillion national debts by selling all of its gold reserve, gold price has to be at US$150,000 per ounce.

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Accelerating printing of fiat paper money around the world is the main driving force of inflation, in the coming decades, you will need to do this to buy a loaf of bread: