The inflation-adjusted number, the finite supply of oil, and the growing demand for oil from one-third of the world's population all point to higher prices.

A weaker dollar, continued geopolitical concerns, weak government data, and higher oil prices have all been factors that have pushed gold higher in the last several days.

As long as oil prices continue to rise and China continues to industrialize, OPEC will be content to sit around and keep production status quo.

Gold at $600 an ounce might be a surprise to many, but these are the same people that were surprised when gold hit $300, when it broke $400 and when it moved to over $500.

Going forward, inflationary concerns will only gain steam, the U.S. dollar will continue its downward decline and geopolitical tensions will continue to draw safe-haven buying from around the globe.

I expect some type of further correction in the short-term, but still see prices heading higher as China continues manufacturing and supply does not meet demand.