“Gold continues to hold above 1600, thereby frustrating the gold shorts while encouraging the gold bulls. Of course the trouble in and around Iran is bullish for gold. Gold always rises in time of war or in time of possible war. Wars are extremely expensive to wage, and they are usually inflationary as shortages appear in all areas. Also, gold is extremely important if one wants to cross a border and land in a safer spot.

When dictators take over a country they confiscate gold, guns, and the media. Citizens use guns to defend themselves, they use the media to tell them what is going on, and they use gold to cross the border as they escape.” – Richard Russell – Dow Theory Letters  (always interesting daily commentary for $300, Russell has been bullish Gold since 2001).

Ed Note: Russell, who is to say the least still really not keen on stocks/economy, did point out a small budding head and shoulders pattern in GLD with it closing above the 200 day moving average…which “may mean that gold has carved out a bottom.“

….An article with some great charts – Gold’s a prime buy below its 200-day Moving Average

…Interesting Note from Mark Leibovit on Platinum