Supply problems are supporting the platinum group metals, and palladium could start to outpace platinum as that market is closer to seeing a balance between supply and demand, according to one precious metals strategist.

Gold is seen as a good inflation hedge and benefits when accommodative monetary policies raise inflation outlook.

Most survey participants in Kitco News’ Gold Survey are expecting gold prices to continue to climb next week, building on recent momentum.

The Fed’s system of banks and other U.S. intragovernmental holdings accounted for a stunning $6.328 trillion in U.S. Treasury debt in Spetember 2011

The Federal Reserve’s Wednesday announcement that it will keep US interest rates low through at least late 2014 will create inflationary pressure, helping gold to climb higher

Precious metals, paced by gold breaking $2,000 an ounce by the third quarter, should lead the commodity sector in 2012 with 20% gains by the end of the second quarter and up 21% for the entire year.

Gold prices climbed to levels unseen since early December on Thursday, extending a rally triggered the previous day after the U.S. Federal Reserve pledged to hold interest rates near zero until the end of 2014.

Gold rocketed above $1,700 an ounce Wednesday for the first time since mid-December when a statement from the Federal Open Market Committee suggested that policy-makers may be even more dovish than financial markets had expected.

Gold hit six-week highs on Monday as the euro recovered against the dollar and other commodities climbed, with confidence in the precious metal rising after it recorded three straight weeks of gains for the first time since November.

Just one decade after the European single currency was launched amid fanfare and fireworks, its future continues to look uncertain as the debt crisis that engulfed Greece, Ireland and Portugal threatens the entire bloc — and the wider global economy.