Probably has to do with many factors, but in my opinion below are a few major ones:
1) Gold is currently priced in USD. And has a good correlation to the USD. The US has printed money lately as if it was monopoly money. Inflation is likely to result and gold tracks positively with the risk of inflation. People may be buying gold as a hard stable currency to avoid losing out when inflation devalues the USD
2) Australia's recent rate hike suggests that the economic rebound is happening. This is positive for gold as it suggests #1 might happen soon.
3) China, Brazi and Russia recently mused that a different global currency is long overdue.
4) Saudi Arabia recently suggested that Oil should be priced in a different currency than the USD. Very positive for Gold.
5) Gold is currently the most secure investment.
6) People. Gold is in a bubble period and people are jumping in. The real question is will the cycle end at $1,100, $1,500, or $2,000?
