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Gold bugs buzzing as the yellow metal soars

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The level hasn't been seen since last August. But in an ongoing response to the Swiss Bank's decision to remove the Swiss franc's ceiling against the Euro, gold has reached new highs this Tuesday. 

Saxo's Ole Hansen says there are other factors at play here including Thursday's ECB meeting and Sunday's Greek election. But the belief that central banks are the providers of market stability has been seriously questioned.

Hansen says investors are using the precious metal as a safe haven bet as well as a hedge against negative interest rates and deflation. He says looking at the options market you can see the increased market risk has led to a jump in implied volatility. Since October money managers have bought 240 tons of gold. 

So how long will this gold rally last? Hansen says at least until Sunday but possibly longer.