The recent European sovereign debt problems have me increasing the odds of near/mid term deflation. Next up on deck are Portugal then Espana.
This is probably favorable for gold as a safe haven investment.
Recent moves by Chinese regulators to allow their citizens to invest in gold funds will also probably help gold. Most Chinese investors really have very limited options for investments. Real Estate for last few years have really been a big driver, but with princing getting frothy in many places, I bet speculators are getting nervous.
