No, it's not oil. Writes John Heinzl in the Toronto Globe and Mail:
Inflation, terrorism, gaping U.S. deficits, avian flu: Could gold bugs have asked for more in 2005?
. . . It didn't hurt that central banks talked of replacing some of their U.S. dollar reserves with gold or that jewellers in North America and Asia were big buyers of the metal. A lack of new mines also helped drive up the price.
Traditionally, gold has traded inversely to the U.S. dollar, in which bullion is priced. But that relationship broke down this year as gold zoomed ahead even as the U.S. dollar made gains against the euro and yen.
While gold was still a long way from its 1980 peak of $850 (U.S.) an ounce, gold bugs confidently predicted further gains in 2006.