Gold is trading around $1.066 an ounce this morning and traded between $1,048 and $1,069 an ounce over the last 24 hrs. Gold continues to move upwards and consolidate at near record levels on continuing oil strength and dollar weakness. Buying of physical gold remains robust on all price dips and this bodes well for further record highs in the short term.

Most analysts have been wrong and bearish on gold in recent weeks, months and years and the predictions made by more bullish analysts that gold would reach its inflation adjusted high of over $2,300/oz were far from the consensus. But there is a gradual realization among some analysts that we are living in unprecedented financial and economic times and quantitative easing, near zero percent interest rates and the explosion of public debt on western governments' balance sheets all mean that gold is very likely to reach its inflation adjusted high of 30 years ago at over $2,300 an ounce.

Posted by Blanchard and Company, Inc.