Gold has been lingering around the $1,335 per ounce for the past several weeks. This prompted many hedge funds to sell their holdings.
Then came the turmoil in the Mideast. First Tunisia and Egypt, now Libya, Bahrain, Yemen and others. That was the catalyst that gold needed. It shot to a new record high of $1,432.10 in the spot market. April gold futures settled at $1,431.20 per ounce, as reported in Reuters.
Then we add Ben Bernanke. In his testimony before Congress, he showed no signs of backing away from his program of creating a $600 billion stimulus. This, in the face of increased inflation in commodities.
Needless to say, this was the perfect scenario for a new gold rally.