"Despite recent gains gold is not yet overbought and the current rise is likely headed higher," say resource experts Mary Anne and Pamela Aden. Here's their latest from The Aden Forecast.

"Gold recently hit another new record high. Its recent strength was clearly propelled gold by the news that India bought 200 tons of the IMF's gold (half of what it's planning to sell) at these high price.

"That action, in one fell swoop, was incredibly bullish. It was viewed as a strong sign that gold is not too expensive and the Indians, who have a long gold history, obviously believe it's going high.

"Interestingly, our leading indicators continue reinforcing this as well. Technically, despite gold's ongoing C rise, its key indicator has not yet reached the temporarily too high area, which coincided with the previous A and C intermediate highs in the gold price. 

"In other words, gold is not yet overbought and the current rise is likely headed higher. As long as this continues and gold stays above $1000 our next target for gold at $1200 is looking more realistic.

"Rising gold and the Fed's pledge to keep interest rates near zero, probably into next year, has been the main reason behind the dollar's weakness. 

"This will keep downward pressure on the dollar in the months ahead, especially combined with the dollar's bearish fundamentals. The dollar index will now remain weak below 76 and a further decline would be underway below 75. 

"Hold onto your gold, silver and gold shares. Gold is now stronger than silver and gold shares; therefore, buy new positions in gold only. Our recommended gold position remains SPDR Gold Shares (NYSE: GLD)."