In its recent FX report, the Japanese bank explains the rationale behind its bullishness… same as always: low inerest rates, strong asian demand, etc. Here is their main comment (and trading strategies):

“We have been bullish gold because of several factors, most notably the low interest rate environment and the continued Asian demand for gold. As a result, we recently went long gold via call spreads when gold was trading around $1620. Since then gold has appreciated by around $150. Our view is that gold is likely to continue to appreciate. Gold‟s potential as a tail risk hedge for the Greek debt situation is also likely to add support. We use this opportunity to restructure our long gold exposure, entering a call spread with higher strikes of $1800 and $1850, while also taking profit on our call spread with strikes of $1650 and $1750. Our current gold forecasts were revised in November and we currently have as our forecasts $1850 for end-Q1 and $2000 for year-end.”
82615047-Nomura-Global-FX-wk-2012-02-23-496874

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