Except for the safe haven of U.S. treasuries and the U.S. dollar, most other commodities are getting slaughtered in the wake of the Japanese crisis.

Here are some prices of nearby contracts compared to five days ago:

• WTI crude is trading at $97.68 per barrel, down from $105.
• Wheat is at $6.89 per bushel, down for $7.89.

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.

Not long ago, there was much talk that the silver rally was over. But it looks like it was just a correction. Of course, silver recently hit a 30-year high, with the price moving over $34 an ounce.

A big part of the spike has been the result of a surge in investment demand, especially from hedge funds. Their positions reached the highest levels in four months (this is according to the net-long position on the COMEX).

"Gold rises with inflation and in times of crisis, like we have today; and, as a result, many countries are buying gold," says Mary Anne and Pamela Aden.

The long-standing resource sector expert and co-editors of The Aden Forecast explain, "They know it's the ultimate currency and gold is again taking its place in the global monetary system, as it has for thousands of years.

"The actions of the world's central banks tell the story. At the very least, this is going to keep upward pressure on gold in the years ahead.

China is allowing its citizens to buy physical gold bars. This new program is unleashing an unbridled demand for the metal. The program works this way: The Industrial & Commercial Bank of China (ICBC), China's largest, sells the bars to customers at real-time prices. Persons who own the bars can resell them to the bank.

To give you an insight into the magnitude of these sales, here are a few statistics. The ICBC sold 7 tons of bullion in January alone. In all of 2010, sales were only 15 tons.

As investors, we are always looking for guidance. For those of you invested in gold, this survey bears reading. Reuters polled 65 analysts to find out what their crystal balls are saying about the price of gold in 2011 and 2012.

For this year, they are looking for a median price of $1,450 per ounce, 18% higher than 2010's median price of $1,225.60 per ounce. The forecast is just above the record of $1,430.95 set in 2010. A breakdown by quarters is as follows:

Three intermarket commodities are on the move today. The Financial Times reported that the U.S. dollar hit a low against the Swiss franc.

Why is this noteworthy? First the Swiss franc is a separate currency, not part of the euro. With Europe in disarray, the only safe currency is the Swiss franc. Anyone wanting to hedge against the eurozone getting worse would buy the Swiss franc. On the futures market, the March Swiss is trading at 1.05610, up 0.0138 (9:20 EDT). The March U.S. dollar is trading at 80.18, down 0.49.

Look for the silver lining. Silver is catching the imagination of investors across the country. Investors who want a piece of the precious metals boom are buying silver in droves.

Why silver? Why now? Gold has moved sharply higher this year and is out of reach of many investors. Silver, on the other hand, is relatively cheap at about $27 per ounce. For a small premium over bullion, you can buy a Silver Eagle coin. Coin sales are up 22% over last year and up 30% over 2007, as reported by CNBC.com

A large scale sell-off materialized in the silver market in mid-November after the CME Group (CME) raised silver margins. The iShares Silver Trust ETF (SLV) fell from over $27 to under $25 in a matter of days on very heavy volume. It looked like a top had been put in after a heady run in the precious metal.

The SLV, however, has now retraced that move despite the fact that the U.S. dollar has been climbing on a near daily basis. A stronger dollar should be putting a cap on the silver market, and that is not happening. This is a very bullish signal that the price of silver is going to continue to climb as we head into 2011. Look to get long the iShares Silver Trust ETF in the coming days.

Gold prices have marched to a new high of $1,422.45 per troy ounce in London. This marks the fourth day of the gold rally.

The Wall Street Journal (subscription required) cited that the prime mover was continued worry over European sovereign debt defaults.Traders and investors are riding the bull higher and higher. To help the gold along, the U.S. dollar is weaker, sparking a rally in key commodities like oil and grains. Cotton is also up again.

Reuters quoted Federal Reserve Chairman Ben Bernanke as saying: "We're not in the business of trying to create inflation. Our purpose is to provide additional stimulus to help the economy recover and to avoid potentially additional disinflation, which I think we'll all agree could also be worrisome."

Bernanke claims that inflation is below the Fed's 2% target. That's hogwash! Sure if you use the "core" CPI, which leaves out food and energy, that may be the case. Not to worry.

The gold market exploded Thursday with the December contract up $45.50 to $1,383.10 per ounce, as reported in the Wall Street Journal.

As usual, there are lots of reasons for the spectacular rise. The two main ones are currency worries and inflation.

Let's take the currency issue first. The December U.S. dollar contract is hovering just above the 75 level. That level held and the dollar then rose to 89.11. Now it has come back down to the 75 level. A breach of 75 would signal a further move down.