Gold has been in a phenomenal, unending, malevolent bear market since November 2011. If you have owned gold in dollar terms it has been a terrifyingly bad trade. There's a real strength in the gold market when you look at it in non-U.S. dollar terms. The difference is enormous.
Why Gold is rallying higher
I think what we are seeing is that the monetary authorities have no choice. They're fighting a deflationary trend. Draghi's comments yesterday saying again he would do everything he could to fight the deflationary tendencies .... to me was the precursor for the rally in Gold.