SOURCES say that "huge progress" has been made in the case and that there may be major developments in the coming weeks.
A key part of the probe has been detailed investigations into Mr Daly's "colourful past" including his links with Dublin-based gangland criminals and dissident mobsters.
But sources now say that the key to cracking the mystery lies in the Cavan area and in "business transactions" that Mr Daly was involved in in the weeks before his disappearance.
"This has been a hugely complex investigation which has not only involved local gardai and detectives from the National Bureau of Criminal Investigation. The PSNI, Interpol, Europol and police forces in England have also been involved but the focus is now back on the rural area in Co Cavan where Mr Daly lived.
"He may have got himself involved in a row with former associates who include a drug dealer who is originally from the Coolock area of north Dublin and a former garda."
The former garda served for a large number of years but retired after a hugely controversial career. Sources say that since retiring from the force he has got involved in criminal activity and was recently arrested as part of a massive probe into stolen property. During his lengthy career he worked as a detective in specialist units.
"What is not in doubt is that Mr Daly was mixed up with some very serious criminals," the source added. "Gardai are also certain that there are people in the Bailieboro area who know exactly what happened Mr Daly and there has been a number of intelligence-led searches to try and locate him."
Mr Daly, who is formerly from Knockmore Grove in Tallaght, was a dog breeder who trained for the security industry -- training dogs which were worth thousands of euro and had the potential to be vicious.
These dogs were at his home when he disappeared last June leading gardai to believe that whoever called to his home was known to Mr Daly.
"Otherwise the dogs would have attacked whoever called there. It had to be someone who knew him who enticed him out of the house," said a source.
The unemployed joiner spent a normal Sunday at his Co Cavan home with his visiting girlfriend Roisin Maguire and her kids and seemed his usual self when they left to go home to Co Armagh. But three days later when she hadn't heard from him his worried partner went back to Cavan to discover Gerard had disappeared. There was no sign of a break-in at the house, the TV was still on and there was no sign of a struggle.
Mr Daly comes from an extremely respectable family and his disappearance has left them utterly devastated. His sister Belinda Daly told the Herald: "Our family are going through an absolute living nightmare. We are appealing for anyone who has information about Gerry's disappearance to contact gardai."
The investigation is being led by gardai at Bailieboro who can be contacted at 042 9694570 or anyone with information can call the Garda Confidential Line at 1800 666 111.