Gold surge signals start of precious metals bull market, with silver and miners leading.

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A convergence of key indicators is signaling the dawn of a precious metals bull market, bringing renewed attention to gold and miners. The current financial landscape paints a compelling picture: The S&P 500 and Nasdaq are scaling all-time highs, reflecting robust market performance. Both Bitcoin and gold are approaching all-time highs, serving as alternative safe-haven assets. Inflation is rebounding, injecting momentum into the precious metals market. Financial conditions are the most accommodating in two years, creating a favorable environment for precious metals.

Despite these positive signs, sentiment in the precious metals sector is notably low. Miners are grappling with distress, and overall capital spending is at unprecedented lows. Implied volatility remains historically suppressed, contributing to a prevailing sense of market distress. The gold-to-silver ratio is at an elevated 90, signaling potential for a silver surge.

Several fundamental factors also contribute to the bullish outlook for precious metals, including central banks accumulating gold at a record pace, overwhelming global debt levels, marginal new gold discoveries, and a deterioration in the quality of existing reserves.

Gold, leading the charge, recently surpassed $2,100 per ounce, marking its highest level since December 2023. Impressively, it stands just 2% away from a new all-time high, even as Fed rate cuts are delayed. The recent weakness in the US Dollar further propels gold prices, setting the stage for a potential breakthrough.

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As the shadows of uncertainty loom over traditional markets, gold and miners emerge as beacons of resilience, hinting at a glittering future for precious metals.

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