It's a signal, but there are other important factors to consider. Central banks worldwide, especially in the EU/Asia, have started easing, leading to increased liquidity and a decrease in currency purchasing power.
This is generally favorable for gold, and a gold rally is expected, with silver likely to underperform initially and then follow suit. I also believe that this gold rally is influenced by a decade of underallocation to gold by fund managers.
The true indicator, however, will be the labour market. If it starts to decline, that's a sign that "things are not as good as they seem." Despite this, I personally prefer investments in businesses over commodities.
Currently, I think junior gold miners present a better opportunity as they are still reasonably priced. It's worth noting that I don't currently own any.
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