Gold continues to hold above support (see the earlier post from yesterday) as rockets flying in Israel and explosions are not something that even the most stalwart gold bear wants to deal with, especially over a long weekend during which anything could happen.
If we come into trading in Asia on Sunday evening here, and we have a further escalation over in the mid-East, gold will continue to attract buying. If we see tensions fade, then gold will likely move lower.
The mining shares appear to have finally attracted some decent buying after being beaten to a bloody pulp for most of this week.
The divergence between the shares and the price of the metal continues however so perhaps we will see a closing of the gap with the shares moving higher and gold either holding stable or drifting somewhat lower.
It is difficult to say which right now but the gap will be closed.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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