Gold price has been under heavy pressure, falling back toward the $4,100 area after trading above $4,600 in late August. But financial markets expert Casey Donaldson thinks investors selling
Gold price has been under heavy pressure, falling back toward the $4,100 area after trading above $4,600 in late August.
But financial markets expert Casey Donaldson thinks investors selling into the weakness may be focusing on the wrong part of the story.
In a recent post on X, Donaldson questioned why investors are selling gold at a time when sovereign debt concerns are increasing and central banks continue building their reserves.
Donaldson pointed to the growing sovereign debt problem as one of the main reasons he remains constructive on gold.
His argument is that governments are carrying increasingly large debt loads at the same time borrowing costs are moving higher.
That creates pressure on public finances and raises questions about how governments will manage those obligations over the long term.
Donaldson also pointed to continued gold buying from China and said Russia is increasing its purchases.
Who in their right mind is selling gold right now? The world is on the brink of a sovereign debt crisis. China is purchasing gold at record amounts. Russia just announced a fivefold increase in purchases starting today. China is the only nation with falling yields due to gold purchases. Gold is the only thing the world trusts right now.
— Casey Donaldson (@caseyjdonaldson) October 7, 2026
His broader point is that central banks are still treating gold as an important reserve asset even as short-term traders sell.
The four-hour chart shows why traders have been cautious.
Gold peaked near $4,660 in late August and has since produced a clear sequence of lower highs and lower lows.
Price is now sitting close to $4,100, near the bottom of its recent range.
The first support area sits around $4,080 to $4,100.
If that zone fails, $4,000 becomes the next major psychological level.
On the upside, gold needs to recover $4,160 to $4,200 before the short-term structure begins to improve.
A larger recovery would need a move back above roughly $4,280 to $4,320.
Read also: “They Crashed Gold Price on Purpose” – The Real Plan Behind the Debt Crisis
Donaldson’s thesis is less about the next few trading sessions and more about the longer-term monetary backdrop.
He believes rising sovereign debt, central-bank demand, and concerns about confidence in government finances continue to support gold’s role as a reserve asset.
That does not mean gold cannot fall further first.
The chart is still weak, and sellers remain in control in the short term.
But Donaldson sees the current decline as disconnected from what he believes is happening underneath the global financial system.
For him, continued central-bank accumulation is the more important signal.
Gold traders may be focused on falling prices today.
Donaldson is focused on why governments themselves are still buying.
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The post “Don’t Sell Gold!” Expert Warns Central Bank Gold Buying Tells a Whole Story appeared first on CaptainAltcoin.
