During these times, participants begin to discount risks and become myopic. Gold can only go up, you see? Inflation, global instability, future taxation, production costs, storer of value, etc., etc.
The tectonic battle between sovereign state and Gold fanatics continues, or so it may seem.
This is a bubble. Production is up, and supply will surely cure demand at these prices. We will also see some fraud going forward as there are far too many financial instruments and derivatives claiming to own physical gold "somewhere" (and likely thinking that only in the case of gotterdamurung will people demand the underlying!)