Gold likes to climb a wall of worry.

Gold likes to climb a wall of worry, they say, so right now it must be beside itself with anxiety.
Gold bugs - as rabid a group of conspiracy theorists as there ever were - like to think their beloved metal is the victim of lurking central bankers and the Illuminati (although anyone who believes world affairs can be controlled by a few old men clearly has never seen a committee in action).

Recent events, though, suggest it is greed, and not fear, driving the price. Bullion rose to $1,140 an ounce yesterday, before slipping back. Its trading at about $1,129 about now.
India's decision to pay US$6.7 billion for 200 metric tons of gold is as much a vote of confidence the metal has had ever since the US abandoned it as a peg for the dollar in the 1930's.

India, the world's largest jewellery market, also has a reputation as being one of the savviest gold players. When the smartest guy in the room puts his money on black, you don't go red. So it's likely this rally has a way to go yet.