Here’s a 3-year daily chart showing that even when the U.S. dollar went up temporarily, the gold kept creeping higher. It’s in a bull market, you see.

And check out the lines I drew. Price is in an uptrending channel, and has room to run.

I won’t be making any claims as to the extent of the up move in precious metals. Just watching the currency policies in the U.S. and reserve the right to change my opinion at any time.

In the chart: $USD US Dollar index, GLD gold ETF. Black line is GLD.
Click to enlarge

Q. What is the average cost of mining per ounce?

A. The average cost of replacing and producing an ounce of gold rose to $428/oz in 2005, a ten-year high, according to Metals Economics Group, based on a study of 18 major gold producing companies. However, costs vary widely between companies and the mines themselves. – World Gold Council

I read elsewhere that the current production cost is $600-700/oz on average.