Gold isn't a hedge against inflation. It's a flight from the dollar, which is much more profound problem.

We are seeing the early warnings of the dawn of international deflation, ... Gold prices are rising because it's a refuge.

The market has traded very poorly. Gold is trading above $600, which is indicative of the inflation outlook. Then there is fear about a strong jobs number tomorrow.

Demand related to inflation and safe-haven fears has been driving gold. I particularly believe numerous gold traders are watching the Iranian situation with great interest, since it has both inflationary and safe haven implications.

Inflation has been one of the main arguments to get into the gold market. There may not be a great deal of upside to gold this year if you take away the inflation side.

People are buying gold because it is now apparent that we are going to see massive inflation. Gold is the best hedge for inflation.