Grummes views the Japanese Finance Ministry’s decision to utilize the Federal Reserve’s FIMA repo facility not as a technical adjustment, but as a return to liquidity expansion. While some analysts maintain that the facility’s collateral requirements limit its impact, Grummes sees it as a signal of systemic pressure. This perspective aligns with his observation of the late-July selloff in technology stocks, which wiped trillions from the Magnificent Seven and left the S&P 500 struggling through its first losing July in over a decade.

Despite his renewed optimism, Grummes remains pragmatic regarding price ceilings. He projects gold could reach $4,500 this summer, with a potential extension toward $4,900, but he does not anticipate a new all-time high in 2026. His strategy involves favoring junior miners like Silver Tiger Metals and First Mining Gold, specifically targeting companies that have demonstrated strength relative to the metal’s own price movements. He believes this sector is primed for a wave of consolidation as producers look to deploy their cash reserves. Meanwhile, he is shifting his focus toward Asian markets, noting that the most significant price action is increasingly occurring during sessions in Hong Kong and Shanghai rather than in London or New York.