Gold is once again heading to a record high and analysts say the long-term outlook continues to predict higher prices.
Many investors expect gold to hit $1,500 an ounce possibly within the next several months. It is the longest gold rally in nine decades and some analysts believe gold will go higher whether the economy gets stronger or slows down.
"Either a swift economic recovery or further dismal economic performance should bring new buyers into the market," said Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt. "A stronger economy would create more jewelry demand. If the economy stays weak or gets worse, then investors will be looking for a safe haven."
Also, Bloomberg News has reported that many investors are accumulating enough gold to fill the vaults of Switzerland twice over. They have accumulated almost 278 tons of gold in 2010 across 10 Energy Transfer Partners, worth $10.4 billion at this year's average price.
"People fear another crisis and so they will diversify into gold," said Thorsten Proettel, an analyst at Landesbank Baden-Wurttemberg in Stuttgart, Germany.