Just quick update since my April 6 posting, Gold Rally Long In The Tooth. The chart above shows the biggest intra-day price reversal in the history of the streetTRACKS Gold ETF (AMEX: GLD) and the largest volume as well. Note, the history for this ETF only goes back to November 2004, but then again gold was less than $450 per ounce back then. Most important is the fact that the bulk of gold’s rally, from $450 to $640, occurred in the six months from November 2005 to April 2006 and now it has given a topping signal. For its part, silver yesterday was brutalized for a 14% loss. If it’s not the mark of a top it’s at least the mark of a new base. Cheers!
From the April 19th NYT:
Iraq II or a Nuclear Iran?
By THOMAS L. FRIEDMAN
If these are our only choices, which would you rather have: a nuclear-armed Iran or an attack on Iran’s nuclear sites that is carried out and sold to the world by the Bush national security team, with Don Rumsfeld at the Pentagon’s helm?
I’d rather live with a nuclear Iran.
While I know the right thing is to keep all our options open, I have zero confidence in this administration’s ability to manage a complex military strike against Iran, let alone the military and diplomatic aftershocks.