From Richard Russell in Dow Theory Letters:

I think the most interesting action in the current picture is the action of gold. I get the feeling of a ground swell, some irresistible force that is driving gold higher. What's interesting is that there are no wild spikes in gold, no fireworks, but a steady, persistent climb. This is powerful bull market action, and where it comes from nobody really knows. Is this the buying of millions of Chinese? Or is it the late-entrance of US hedge funds? Or is it short-covering on the part of squeezed COMEX speculators.

In the end, does it matter who's doing the buying? I know this -- most Americans have been brain-washed after many years of anti-gold propaganda. Most Americans don't know anything about gold. Most Americans have not been buying gold. Most Americans don't realize that gold is the time-honored ultimate form of money. So the buying is probably coming from some place other than the US populace.

So far the gold action is coming in via almost measured increases of 3 to 10 dollars a day. It's as if the buyers are waiting for a correction, and when no correction arrives, they say "What the heck" and they buy a quantity of gold, maybe not as much as they'd like, because they keep waiting for that elusive correction.

Crux Note: Learn more about the excellent Dow Theory Letters here.

More from Richard Russell:

Why politicians and bankers hate gold

The White House's secret plan for the dollar

The great Richard Russell on the dangerous secrets of the Federal Reserve