Interesting how quickly the spike in gold occurred from the time the somali rescue effort was announced and how quickly it was taken back down ... 1670 is a war zone for gold!

Could be a coincidence. Maybe the market was reacting to that Debka story? If it's true, India will have to buy a lot more gold than at present, even if it can find substitute markets as casey suggests.

I don't find the day-to-day price moves all that meaningful though, when measured against this:

http://www.kitco.com/charts/popup/au3650nyb.html

We just bounced off the secondary trend line, but even if that breaks, the primary trend needs a monthly close below 1000 to be definitively broken, and how likely is that? If you think about it, gold is the classic definition of a buy and hold trade - probably the only one left.

ebear