The Gold prices were only around the 1060 dollars to an Ounce a year back, and they have gone up to a new life time high of 1280 dollars this week. The surge in Gold by over 18% is really taken back all the class of investors by surprise.
The speculators expected the prices to remain within plus or minus ten percentage range but that has been knocked out by a huge margin. Then the long term investors expected it to deliver decent returns of 5% to 10% and then were also shocked on the positive side.
The key reasons for the surge have been the demand from unexpected quarters like central banks of some of the most fund flush countries like China, Australia, South Korea and India. Given the uncertain outlook for US and Europe it would be logical to expect more demand for Gold in the coming months.