it may be due to seasonal demand for metals, or the impact of the global bailouts and stimulus packages, or perhaps the money on the sidelines invested at 0% is finding its way back into the mining sector. whatever the reason, more analysts are bullish on precious metals. this is from casey research:

The revolt against currencies that we’ve been expecting seems to be coming to pass.

“Safe-haven buying interest [is] prevalent,” says Peter Grant, senior metals analyst at USAGold. With central banks around the world cutting interest rates, it “seems like the world will soon be awash in paper money, and that is very bullish for gold.”

Or, as the ever-astute Peter Spina, of Goldforecaster.com, summarized: “Gold continues to benefit from destructive monetary policies which are being pursued globally. As capital seeks to preserve its purchasing power, currencies once deemed more powerful than gold are now being questioned. The relative size of the gold market compared to global monetary system reveals that only small fractions of this capital looking for safety will significantly boost its value. Gold is returning as the king currency and its scarcity will propel prices significantly higher. Currently record highs from 2008 are back in focus, exceeding these levels will likely ignite another influx of demand which could bring about $1,100 to $1,200 over the coming several months, if not sooner. We will continue to see strong bids on pullbacks.”

Even Goldman Sachs is jumping on the bandwagon. It said on Wednesday that it expects gold to rise to $1,000 an ounce within three months. That’s up 43% from the bank’s previous forecast.

http://caseyresearch.com/displayDrp....