Gold has taken out $900/oz this morning after gaining $41 on Friday. Since mid-November's low of $700/oz gold has rallied $200 or 28.5%. Gold has been higher eight years in a row and remains one of the few assets that seems to be thriving in this deflationary environment.
It should not come as a surprise since western governments have been monetizing failing banks, brokers and the auto industry. I expect gold to exceed $1,200/oz this year and quite possibly $1,600-2,000 in the event of a financial panic.
The fact that gold has been rising in the face of a rising dollar is impressive. When the dollar resumes it's fall, as I'm sure will happen, gold should take off in a buying panic.-Lou
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