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Today gold hit a new all-time high against the dollar and yesterday it made a new high against the euro. What's driving gold higher? Gold continues to be a haven for those who worry about the health of the world's financial markets (e.g., the eurozone sovereign debt crisis), and it continues to benefit from the ultra-low interest rates and accommodative monetary policies of most of the world's central banks (with the Bank of Japan being the notable exception). Gold is a safe-haven play, and it is an inflation play. That's the way it's always been with gold.
As this next chart shows, gold has a tendency to lead commodity prices, so the continued strength in gold prices suggests we will see a renewed rise in commodity prices after their recent sell-off. In fact, as the chart below of a popular index of commodity
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