I've spent two decades tracking the forces that move gold...
For 20 years I've lived inside the data, the cycles, the macro shifts...
And what's happening right now between Saudi Arabia and the Chinese is a turning point that will move the price of gold in a way we haven't seen in generations.
Because the Saudis have quietly walked away from a pact it struck with the U.S. in 1974...
A pact that quietly ran the global financial system for the past half-century.
The arrangement was simple: Saudi Arabia would price its oil only in U.S. dollars — which meant every nation on the planet had to stockpile U.S. Treasuries just to buy energy.
That single agreement is the bedrock American financial supremacy has rested on for fifty years.
And now, it's gone.
The mainstream press barely covered the unwinding of this deal...
And in the beginning, the surface looked calm.
But the cracks are now impossible to ignore...
Saudi Arabia inked a $7 billion currency swap with Beijing… Started clearing oil transactions in digital yuan… And plugged itself into mBridge, China's cross-border settlement network.
Conflict with Iran is pushing Gulf states toward yuan-denominated oil contracts...
And vessels moving through the Strait of Hormuz are now paying tolls in yuan, in crypto, in anything other than the greenback...
On both shores of the Persian Gulf, the dollar's grip is loosening... and something else is taking its place.
The collapse of this enormous, built-in global demand for dollars will rewrite how money works.
Because if crude no longer requires dollars, then the world has no reason to warehouse U.S. currency.
And when dollar demand softens… Treasury demand softens right alongside it.
Ten-year yields are already creeping toward 4.4% — the level where the machinery starts to seize up.
Weaker Treasury demand → climbing yields → Fed steps in → the printers fire up → and the dollars in your account quietly lose their muscle.
That's the chain reaction unfolding in front of us.
As the dollar weakens and foreign buyers walk away from American debt, gold has nowhere to go but up.
A sinking dollar is the most powerful tailwind gold has ever known.
But the smartest way to position for the dollar's decline isn't to load up on bullion…
There's a different vehicle for capturing gold's next leg higher...
An asset that's still priced at a dramatic discount to where gold itself is trading today.
It's gold exposure at a fraction of the cost...
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Best,
Garrett Goggin, CFA, CMT
Chief Analyst and Founder, Golden Portfolio
Drone Stocks Soar As Pentagon Considers Funding, Including a Trump-Linked Name
Submitted by Leo Miller. First Published: 6/1/2026.
Key Points
- A Wall Street Journal report on the Pentagon's $1.1 billion Drone Dominance program sent drone-related stocks broadly higher across multiple sectors.
- Unusual Machines surged 57% after being named as a potential funding recipient, with shares up more than 100% year-to-date and 900% since its 2024 IPO.
- Kratos Defense and Axon Enterprise also gained 13.8% and 12.3%, respectively, reflecting investor interest in autonomous defense and counter-drone technologies.
- Special Report: Elon’s “Hidden” Company
Drone stocks just caught a bid after investors reacted to a Wall Street Journal report that the Trump administration is in talks to fund multiple U.S. drone companies tied to the Pentagon’s “Drone Dominance” initiative.
The report linked those talks to the Pentagon’s $1.1 billion Drone Dominance program, which is designed to accelerate the deployment of low-cost, one-way attack drones. Official program materials describe a goal of fielding hundreds of thousands of weaponized drones by 2027, while the Journal reported a target of 300,000 drones.
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Download the free SpaceX Investing Blackbook before these names go mainstreamThe news sent many drone stocks flying higher as the government signaled demand for drones and a potential willingness to help finance the projects. Unusual Machines (NYSE AMERICAN: UMAC) was the only publicly traded company directly named in the report, but the rally quickly spread to other drone-adjacent stocks. Companies with exposure to drone components, autonomous defense systems, and counter-drone technology also moved higher, including Kratos Defense & Security Solutions (NASDAQ: KTOS) and Axon Enterprise (NASDAQ: AXON).
Unusual Machines: Trump-Linked Component Maker Pops More Than 50%
Unusual Machines stock surged by a whopping 57% in one day after being identified as one of the companies under consideration for potential funding.
Notably, President Trump’s son, Donald Trump Jr., is a member of Unusual Machines' board of advisors and a shareholder in the small drone component manufacturer. In 2024, shares soared more than 80% in the two days following the company's announcement of Donald Trump Jr.’s involvement.
Overall, Unusual Machines shares are now up more than 900% since going public in 2024 and more than 100% year-to-date (YTD).
Unusual Machines' Q1 2026 earnings report was mixed. Sales of $8.1 million were well above the $5.5 million analysts expected, resulting in revenue growth of 296% year over year (YOY) and the company’s eighth straight quarter of record sales. However, the company missed on adjusted earnings per share (EPS) by a wide margin. Its EPS of 21 cents was 15 cents below the analyst estimate.
The company had more than $220 million in cash on hand at the end of the first quarter, giving it ample financing runway despite cash burn of $38 million over the last 12 months. However, an injection of government capital could allow the firm to scale operations much faster.
The analyst consensus price target of $22.33 implies a decline of more than 20%. However, analysts may raise their targets following the company's inclusion in the report. At the same time, it's possible they will wait for more information on potential government funding before making any changes.
Kratos: Autonomous Fighter Jet Stock Spikes
Kratos was not named in the report, but it saw a clear sympathy move, gaining 13.8% as investors looked for broader exposure to the unmanned aerial systems market.
Kratos is not known for traditional “small” drones, but for developing autonomous fighter jets, including its Valkyrie and Mako systems. Target drones are also a significant part of its business, as customers use them to learn how to fight against autonomous targets.
Kratos took the stock market by storm in 2025, rising 187%. This made Kratos one of the best-performing defense stocks of the year, eclipsing the 174% return of Rocket Lab (NASDAQ: RKLB).
However, Kratos shares have come way down in 2026, dropping approximately 50% from their all-time high.
Much of the decline appears tied to the stock getting ahead of itself rather than a clear deterioration in the business. Kratos has handily beaten estimates in its last three earnings reports, but the stock still dropped substantially after each report. Valuation was a major factor in the pressure. In mid-January, shares traded at a forward price-to-earnings (P/E) ratio near 183x—a level that is difficult for most stocks to sustain.
While Kratos’s main focus is not on the small units the Drone Dominance initiative emphasizes, the report signals strong government interest in the overall UAS industry. In 2025, 68% of Kratos's revenue came from contracts for which the U.S. government was the final customer.
Axon: Gains 10% as Counter-Drone Demand Gets a Fresh Catalyst
Axon Enterprise (NASDAQ: AXON)—best known for its TASER devices, police body cameras, and key software products used by law enforcement—is consistently expanding its offerings, including drones. But it operates on the other side of the equation: providing counter-drone solutions.
Axon was also not named in the report, but the stock rose 12.3% as investors looked beyond drone manufacturers to companies that could benefit from rising demand for drone detection and defense systems.
Axon acquired its Dedrone business in 2024 and saw massive growth from the product in its latest quarter. Counter-drone sales increased by approximately 300% YOY, while bookings rose even faster at 500% YOY. Notably, the Pentagon recently awarded a three-year contract with a $500 million ceiling to counter-drone company Perennial Autonomy, underscoring interest in counter-drone systems.
Despite this surge, Axon Enterprise shares have faced significant pressure over the past 52 weeks, down over 45% from their high. Like Kratos, valuation was a concern, with Axon trading at a forward P/E ratio as high as 131x in 2025. The broad sell-off across the software industry, driven by fears of artificial intelligence disruption, has also affected the stock.
This comes even though hardware continues to make up the majority of the company’s sales. Last quarter, hardware accounted for 56% of sales, while software and services accounted for 44%, and both segments posted very strong YOY growth of over 30%.
Urban Outfitters Stock Stalls Despite Another Strong Quarter
Submitted by Jennifer Ryan Woods. First Published: 6/3/2026.
Key Points
- Urban Outfitters extended its recent run of strong quarters, once again topping Wall Street expectations while delivering record sales and earnings.
- Growth was broad-based across the company's portfolio, with Free People and FP Movement posting strong results, while Nuuly and the wholesale segment delivered particularly strong revenue growth.
- Despite concerns about tariffs and higher freight costs, Wall Street remains bullish on the stock, with analysts' consensus price target implying more than 20% upside from current levels.
- Special Report: Elon’s “Hidden” Company
Urban Outfitters Inc. (NASDAQ: URBN) delivered a strong first quarter, posting record sales and earnings that topped Wall Street expectations. The results extended the retailer's recent run of strong quarters and underscored continued strength across its brands.
Investors were pleased with the results, sending shares modestly higher after the earnings release. Since then, however, the stock has drifted lower. The pullback may reflect concerns about tariffs and freight costs, or perhaps simple profit-taking after the stock hit an all-time high in January.
Record Results Driven by Strength Across Brands
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Download the free SpaceX Investing Blackbook before these names go mainstreamFor the first quarter of fiscal 2027, Urban Outfitters, whose portfolio includes retail brands such as Free People, Anthropologie, and Urban Outfitters, reported earnings of $1.30 per share, up from $1.16 a year ago and 18 cents ahead of Wall Street expectations. Revenue rose 11.4% year over year to $1.48 billion, beating estimates by nearly $17 million.
"Our teams delivered another outstanding quarter, exceeding our plans and setting new sales and operating profit records," Chief Operating Officer Frank Conforti said on the earnings call. "All our retail segment brands delivered positive retail segment comps, while four of our five brands posted record first quarter sales."
Free People and FP Movement were particularly strong performers during the quarter, with Free People delivering 12% revenue growth and FP Movement reporting a 32% increase in brand revenue. Together, the FP Group achieved record first-quarter profitability, benefiting from record-low markdown rates, strong store performance, and leverage within the wholesale channel.
The company's clothing rental subscription service, Nuuly, and its wholesale segment also delivered strong results, with revenue increasing 35% and 25%, respectively.
Company Could See High-Single-Digit Sales Growth
During the earnings call, Chief Financial Officer Melanie Marein-Efron said Urban Outfitters is off to a solid start in the second quarter and could achieve high-single-digit sales growth in both Q2 and the full fiscal year.
She cautioned, however, that Q2 gross margins could be flat to down about 25 basis points due to lower initial merchandise margins (IMU), higher tariffs, and fuel surcharges tied to the Middle East conflict.
Despite those headwinds, gross margins could expand by about 25 basis points for the full year, aided by an improvement in IMU during the second half. The outlook assumes tariffs remain at 10% through July before increasing to a blended rate of 15% in the second half of FY2027. It also incorporates a roughly 70-basis-point quarterly headwind from elevated fuel surcharges.
Stock Takes a Breather After Strong Run
Investors appeared to anticipate the strong quarter, as Urban Outfitters shares rose more than 4% ahead of the earnings release on higher-than-normal trading volume. The stock gained another nearly 3% in the session following the report, but has since given back those gains. At a recent price of $71.36, shares are trading roughly in line with their pre-earnings level.
Despite the recent pullback, Urban Outfitters has been a strong performer over the longer term. Shares have climbed more than 88% over the past five years as the company has continued to grow sales, expand profitability, and execute well across its brands.
That momentum helped drive the stock to an all-time intraday high of roughly $84 in January. Since then, shares have drifted lower. They are down about 5% year to date, though they remain up more than 8% over the past three months.
Analysts Still See Upside
Following the earnings report, two analysts raised their price targets on the stock, while one reiterated a Hold rating and another lowered its price target.
Overall, Wall Street remains bullish on Urban Outfitters. The stock carries a Moderate Buy rating based on 15 analyst ratings, including eight Buys and seven Holds. The consensus price target of just over $87 implies 20% upside from current levels, with price targets ranging from $72 to $100.
Urban Outfitters trades at about 13X earnings, below the retail industry's average of roughly 16X. However, the stock is more expensive than some apparel retail peers. Abercrombie & Fitch Co. (NYSE: ANF), whose shares rallied after a strong first-quarter earnings report, trades at about 7X earnings. American Eagle Outfitters Inc. (NYSE: AEO), which fell sharply after reporting first-quarter results, trades at roughly 10X earnings.
Short Interest Remains Elevated
Despite Wall Street's generally bullish outlook, short interest remains elevated. Roughly 7.2 million shares, or 12.4% of the float, were sold short as of May 15. While still elevated, the figure has declined from the levels seen over much of the past year, when more than 15% of the float was shorted.
Urban Outfitters continues to execute well, posting record sales and earnings while extending its recent run of strong quarters. While tariffs, freight costs, and a premium valuation relative to some peers may be giving investors pause, analysts remain broadly bullish. If their forecasts prove accurate, the stock could still see meaningful upside from current levels.
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