Political instability in the US and the devaluation of the US dollar against most major currencies has seen many major Reserve Banks trade in their $USD for gold. Creating demand pressure and forcing the price upward.
As well as this their is reports that many of middle eastern oiling coutries are converting their reserves from $USD to gold now.
The way America is going with its spiralling debt and unstainable current account defecit I think we will see alot more of this happening in the near future.
LHG
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