This is a simple analysis that I continue to hold to. As long as governments continue to spend and print money to pay for their spending, gold will go higher. Everything else is just noise. I guess I'm an Occam's Razor kind of guy (my wife uses other terms of endearment).

I find it interesting that Northern Trust is NOT using CPI in the analysis. We all know that CPI is bogus, will we hear less on CNBC about "low inflation"?

Regarding the recent 5 week rally in Gold, I don't think that the move is as simple as the Northern Trust analysis because this has been the same story for a long time. Did traders just now figure it out? The reason why I think that shorts are getting out of their positions is that the upward move has been too easy and smooth. They have always fought the bull moves by trying to push the price of gold down violently in the COMEX trading pit by sending in their broker to jump up and down yelling something like; "Sell a gazillion at $500..$495...etc.!!!" This would push the price down and get weak holding longs to help push the price down to the benefit of the large shorts. If I want to sell a gazillion anything, I do it quietly so that I get the best price. Did they decide to liquidate their shorts? We'll find out soon enough.

All-
Is my monitor not working correctly or is GLD up 1 3/4? Whoa.