The Gold prices have always surged up during weak global economic conditions, and that seems to be repeating. Till few years back, the Gold prices were moving up only due to sustained demand from individuals in countries like India, Japan and US.
Now governments are showing interest in buying up the metal, not in kilograms but in metric tons. That has been the key reason behind the spike up in Gold prices by over 40% in the last one year. China has doubled the gold reserves , while India has seen a 30% increase in Government Gold reserves. We can expect Japan also to buy gold once the economy revives.