The shine is still on gold. The reason is a weakening U.S. dollar. Huge deficits, geopolitical risks and the desire for diversification will have countries selling their U.S. dollars and putting it in alternative investments such as gold. Some of these oil producing nations would rather put their petrodollars in non U.S. assets for fear that the United States can seize their assets for whatever reason.

I suspect the U.S. is deliberately weakening their currency to make their goods more competitive, despite their official stance of wanting a strong dollar. I figure the commodity should hit $700 this year and ultimately $1,000.