Gold rose to new record nominal highs at $1,540.85/oz in early Asian trading last night. Silver and gold remain very close to nominal highs today as the beleaguered US dollar remains under pressure due to ultra loose US monetary policies, deepening inflationary price pressures and concerns about the feeble economic recovery.

Gold has risen 8% this month and silver 28% due to the very poor US monetary and fiscal position, the Eurozone debt crisis and in the background the Japanese nuclear crisis, and geopolitical instability in the Africa and the Middle East. This is continuing to lead to diversification into the precious metals.