Clive Maund Warns Debt Saturation Pressures Treasury Yields on Precious Metals

Clive Maund, a veteran technical analyst, spoke about the Treasury market, soaring government debt, gold, silver, oil, inflation, and the global fiat monetary system in an interview with Mike Maharrey of Money Metals.

The discussion began with the Treasury market and its impact on gold and silver. Maund noted that rising yields have put pressure on precious metals, but argued that it's not just a short-term chart pattern. He said that governments around the world have been borrowing and creating money for decades, leading to debt saturation.

Maund estimated that the cost of servicing the US national debt is around $1 trillion per year and described the current moment as one of debt saturation. He also mentioned that policymakers have limited options: allow yields to rise or create more money to support government debt, further undermining the purchasing power of the currency.

Turning to gold, Maund said the short-term setup looked bearish due to a small head-and-shoulders top formation on the three-month chart. However, he stressed that this pattern did not look like a long-term top and identified roughly $3,900 to $3,950 per ounce as a potential area of strong support.