In addition to being a safe haven investment for those looking for cover as political unrest in the Middle East continues, gold is also an inflation hedge. The Eurozone reported January inflation at 2.3%, higher than its mandate of 2%. The European Central Bank is meeting Thursday to discuss interest rates. The debate about whether to raise interest rates will no doubt take center stage at the meeting especially as oil prices rise, but aggressive action isn't expected and, if anything, it just draws more attention to the fact that inflation is heating up globally. Brazil's inflation rate is almost 6%, Russia's is at 10%, China almost 5%, U.K. almost 4% and even if central banks raise rates as Russia and China have done recently, it will take a lot of hikes to return to a positive interest rate environment. In the meantime, a weaker U.S. dollar should support higher gold prices in the midst of any profit taking. The U.S. dollar index was down 0.40% to $76.95.