Gold Touched New Highs - Iran Rattles the Saber

Gold made substantial upward move over night. The high was 1253.30. That is exciting, but can it hold and what will it be at the close?

From UPI.com:

Iran ready to protect Gaza-bound ships

TEHRAN, June 7 (UPI) -- Iran is prepared to deploy the Islamic Revolutionary Guard Corp naval forces to escort aid ships pressing an Israeli blockade on Gaza, authorities said.
Israel enacted a blockade on Gaza in 2007 to keep weapons out of the hands of the ruling Hamas, which has vowed to destroy Israel. If this comes to fruition, it could escalate war in the Mid-East. Read it HERE.

From TheStreet.com:

Price Manipulation in Gold and Silver?

This is the most contentious debate in the precious metals world. Both sides get very angry with the other side. So what's your end goal? And who are you funded by? Powell: Our goal really is a free market in gold and precious metals and really by extension, free markets in all financial instruments, because the gold price rigging is a matter of rigging the currency, bonds and commodity markets generally. Read it HERE.

From MineWeb.com:

Elliott Wave Intl. President says gold could fall 40%

Robert Prechter reiterated a view that technical indicators could suggest a sharp fall in price ahead for gold.

Author: Frank Tang
Posted:  Monday , 07 Jun 2010
NEW YORK (Reuters)  - 
The price of gold could drop 40 percent from its all-time high because of bearish technical momentum and deflation amid a European debt crisis, said Elliott Wave International President Robert Prechter on Monday.

Prechter said at the Reuters Investment Outlook Summit in New York that recent readings of gold market psychology showed a 98 percent bullishness in the metal, the highest ever recorded for any physical commodity. Read it HERE.

From MineWeb.com:

If Israel is Not Evil, the World is in Trouble

With the exception of the United States, nearly all the world's nations; newspapers, radio and TV news stations; the United Nations; and the world's Leftist academics and organizations have condemned Israel over the Gaza flotilla incident. The characterizations of the Jewish state range from a society so evil that it should not be allowed to exist to a villainous nation that is responsible for a) the suffering of millions of innocent Palestinian men, women and children; b) the lack of Mideast peace; therefore c) the Muslim world's anger at the West; and therefore d) Islamic terrorism itself.
Let's hope the world is right. Read it HERE.

From Telegraph.co.uk:

Euro 'will be dead in five years'

The euro will have broken up before the end of this Parliamentary term, according to the bulk of economists taking part in a wide-ranging economic survey for The Sunday Telegraph.  Read it HERE.

From Ed Steer's Gold and Silver Daily:"Ted says that if this is the real up-move in silver, JPMorgan may want to get the silver [and gold] price up in a big hurry.  This might give the tech funds second thoughts about jumping in on such a huge price spike... and they may decide to wait for a pull-back... which, of course, will never come.

Ted also said that if this is not the big move in either, or both, metals... then this is what the price action will look like when it finally does happen

Based on that, today's trading in New York takes on a whole new meaning... and we'll find out soon enough if any of the above holds water... so hold onto your hats." I do not believe that this is it, but it could be. There will come such a time. When is the big question.

Here are the miners from Scottrade.com:

 The Currencies from Kitco.com:

Some prices in early trading: BYDDF 8.05; FVITF 1.92; TLT 98.15; GDXJ 27.73; DOW down 15 to 9605; Gold up 6.80 to 1247.10;  Silver up 0.22 to 18.36.

We are being treated to challenging and interesting markets. I would like to have more miners in my portfolios, but am being extra cautious. Almost all miners are up today. The silver miners have not responded as one would expect with the steadiness of the silver price above 18. A move to 19 would provide more bounce for the miners; however, it does not seem to be in the offing at present.

Patience pays off very often. By the way, this is no longer a buy and hold market, because it is just too volatile. It is a market for traders, except for the physical metals and ETFs holding the metals. I also like Everbank.com World Markets Metal Select Accounts. 

King Jesus is in control of all. He controls the markets and knows what He plans to do. We do not, but must depend upon Him and His word for accurate guides. We rest in His love from which nothing in Heaven or on earth can deprive His people. Praise Him continually.

Best, Doug