Yesterday, the fiscal situation in Greece worsened. And Portugal became news as well as it's debt rating was downgraded.
This, strangely enough, caused a flight to the "safety" of the U.S. dollar.
Now, usually when the U.S. dollar increases in strength it causes a corresponding decrease in the value of gold. But this didn't happen yesterday. In fact, gold shot quite a bit higher. This is important because perhaps some people are starting to realize that there is no safety in the U.S. dollar. Because the U.S. is actually no better off than Greece or Portugal. It's just that the majority of the world hasn't caught on yet. It'll probably take a few more years for it to really happen, but if you think gold at $1,160 an ounce is high, wait until people figure out that it's the only real store of value.
Like I've said, it will sure be interesting to see how all of this plays out.