Precious metals point to a possible mean-reversion move
Precious metals are showing renewed strength. Platinum, palladium and gold are consolidating above their July highs on daily charts. Silver is the exception, still testing those same levels.
The sector is starting to break above the upper end of the sideways range developed over recent weeks, where bullish divergences had been building in technical oscillators. That increases the probability that a base may be forming.
Against this backdrop, a mean-reversion move is gaining traction, allowing precious metals to recover part of the ground lost during a difficult first half of the year, when corrections from record highs exceeded 50% in some cases.
Gold, daily chart with RSI (14)
Source: TradingView, 6 August 2026
Fiscal concerns revive the debasement trade
Gold and silver are real assets whose appeal tends to increase when investors fear a loss of purchasing power in fiat currencies. The narrative that has driven their multi-year uptrend rests on the so-called debasement trade, or the search for protection against monetary devaluation.
High debt levels, fiscal deficits, monetary expansion and persistently elevated inflation are the pillars of this narrative. Recent developments are reinforcing it.
