I am a professional precious metals dealer and can tell you that, like oil, gold prices are most affected by investors. Have you ever noticed that when the price of oil goes up, the price of gold goes up as well? Also, in the past few years mass hysteria over the value of the dollar has fed into the high price of gold. If people think the dollar won't have value, they go to gold for security. The problem is that gold is almost impossible to spend unless it is used as coins.