Far East Capital Newsletter
What to Expect from the Gold Sector this Year
18 Jan 2026

In This Issue


What to Expect from the Gold Sector this Year

The more hand grenades that Trump throws into the news flow, the more the gold price responds. The latest one, regarding his attitude towards the Fed, took the gold price to another record high. Trump inspired instability is underpinning the strength in the gold price ... and we have another three years to go with Trump. The mind boggles.

The debate about Greenland and Trump is incredulous. For a country that prides itself on not having a king, Trump is making a decent fist of being a regent. His comments about wanting the island for security reasons just don’t make sense. The same objective - resource security - can be achieved by many different methods and agreements. There would be something seriously wrong if one megalomaniac was to dictate history by abusing his allies . This is the sort of talk that we might expect from Russians or Chinese, but from the USA? Please, give us a break.

There is not much doubt that the gold price will continue to rise during 2026. Sure, there will be volatility and some people are already saying that gold is a sell, but you would have to be very brave to exit gold just now. About 40% of our stocks under chart coverage have gold exposure, so they have a heavy weighting in the calculation of sentiment. While ever the gold price is strong, sentiment in the resources sector will be positive and liquidity will be likewise strong.
 

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