Gold Breaks $2,700: A Silent Bull Market with Unseen Potential

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Gold has shattered a significant milestone, reaching $2,700 an ounce for the first time ever. As the price climbs, questions arise: What happens when real buying volumes hit? This stealth bull market is gaining momentum, and it’s clear that we’re on the verge of something bigger.

The Junior Gold Miners ETF (GDXJ) hit a new 52-week high, yet the market is largely indifferent, with volumes remaining low. But don’t let that fool you—this is a silent rally. Silver, too, is on the cusp of a major breakout, trading just below a key technical resistance level. As gold’s price rises, buying pressure on silver is intensifying, and it’s just a matter of time before silver follows gold’s lead into a “melt-up”.

Fundamentally, silver has all the right ingredients. As gold continues its surge, silver is positioned to explode—we’re mere weeks, if not days, away from a breakout. But will it sustain? Gold at $2,700 is a crucial level. If it can turn this price from resistance into support, we could be looking at a 15-20% correction before pushing for even higher gains.

The Fed and the Treasury cannot afford to ignore what the gold market is signaling. With U.S. debt spiraling, gold could soon replace Treasury bonds as the preferred safe haven asset. This is not a far-fetched idea—Bank of America has hinted that gold is positioning itself as a safer bet than government bonds, especially in a world where fiscal mismanagement continues to mount.

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Gold’s stunning performance this year, gaining more than 30%, has been driven by falling interest rates, central bank buying, and increased interest from retail investors. People are flocking to stores like Costco to buy gold bars and pouring money into gold ETFs. As gold edges closer to $2,700, it’s clear: gold’s market cap is quietly inching toward $20 trillion, signaling that this bull market is still in its early stages.

However, the big picture looms: U.S. debt is on an unsustainable trajectory. Whether it’s Trump or Harris in the White House, neither candidate has a clear plan to fix the debt problem. Trump’s tax plans are expected to add $7.5 trillion in new debt, while Harris’s plans would add $3.5 trillion. As global spending commitments rise—driven by climate change, demographic shifts, and growing defense spending—the pressure on sovereign debt mounts, making gold even more attractive in comparison.

For the savvy investor, patience pays off. Silver recently hit a 14-year high, trading above $33.25, and the opportunity to buy below $30 may now be gone for good. But those looking to enter still have a chance: the opportunity to buy silver below $40 remains—but not for long. As gold surpasses $2,720, both gold and silver seem poised for a much more significant rally in the near future.

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Gold’s surge isn’t just a price movement—it’s a warning sign, a reflection of the instability in the global financial system. As inflation continues to rise and the purchasing power of traditional currencies erodes, gold stands as the ultimate safe haven asset. The race for gold is only beginning, and with economic uncertainty continuing to cloud the future, this market is likely to have more than just momentum—it could very well be unstoppable.

Sources:

www.marketwatch.com/articles/gold-price-treasury-bonds-us-debt-1ae5bac3?mod=search_headline

x.com/goldseek/status/1847245852848296011

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