Gold burst decisively through the $560 mark...even as many participants are out for the U.S. holiday.
A global scramble for the asset is now unfolding, as the fund-driven price action is snowballing and attracting investors from all walks of life.
In a world where news stories continue to make ominous ripples, gold is acting like the thermometer of collective global anxiety.
We saw little evidence yesterday that the Godzilla-size footprints of funds bailing out of gold was present. We did see evidence overnight that millions of tiny (individual-investor) footprints make for an equal-size impact on gold -- in the opposite direction.
The huge pool of global liquidity out there has not found a better place to rush into, and is enchanted with gold and its prospects.
Aside from the amalgam of worrisome news items coming from many corners of the globe ... the investment community is also looking with apprehension at economic news and has nothing to smile about.
Expect volatility to go higher and trading ranges to expand.
The unfolding petro-nuclear Iran debacle laced with faith-based overtones is making the average investor quite nervous these days.
Diversifying away from dollars has become desirable -- retail investors returned to the precious metals arena in droves this week.
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