I think a lot more people are starting to view gold as a currency of sorts and realize that in this uncertain geopolitical environment, they are fleeing to something that has always been a historical safe haven.
The uncertainty surrounding the situation with Iran and their nuclear program has brought an added degree of volatility into the gold market.
As long as oil prices continue to rise and China continues to industrialize, OPEC will be content to sit around and keep production status quo.
If commodities prices are at their multi-year highs, then you'll expect that the producers and the manufacturers are going to pass through these costs. You're paying more at gas pumps. My cable bill was just raised, food prices are a little bit high.
A weaker dollar, continued geopolitical concerns, weak government data, and higher oil prices have all been factors that have pushed gold higher in the last several days.
I expect some type of further correction in the short-term, but still see prices heading higher as China continues manufacturing and supply does not meet demand.
Going forward, inflationary concerns will only gain steam, the U.S. dollar will continue its downward decline and geopolitical tensions will continue to draw safe-haven buying from around the globe.
Gold at $600 an ounce might be a surprise to many, but these are the same people that were surprised when gold hit $300, when it broke $400 and when it moved to over $500.
The inflation-adjusted number, the finite supply of oil, and the growing demand for oil from one-third of the world's population all point to higher prices.
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