One way to determine whether the gold price has reached an extreme, bubble-like valuation is to compare it to the S&P 500.  As you can see from this David Rosenberg chart, the gold-to-S&P 500 price is near it's historic norm and far, far away from the 1980 level of 5X the S&P 500, which was the last time gold was in a bubble. 



Gold is going to continue higher until the debt problems are resolved, negative real interest rates turn positive, and the growth in the money supply is reduced to a more responsible level.  At least one of those factors has been driving the gold price up since 2000 and I see nothing in the near future to change that. 

H/T Zero Hedge