Gold futures rise more than $20 amid more tensions on Iran

Gold futures rise more than $20 amid more tensions on Iran MarketWatch - Silver rallies as much as 9% after launch of exchange-traded fund

Friday April 28, 1:08 pm ET

SAN FRANCISCO -- Gold futures rose more than $20 an ounce Friday to levels not seen since late 1980, up more than 10% from prices seen a month ago, after the U.N. Security Council said Iran failed to meet its deadline to halt uranium enrichment and refused to cooperate with U.N.-appointed inspectors.

At the same time, silver prices climbed as much as 9% as the first U.S. silver exchange-traded fund began trading.
"Iran continues to provoke conflict and the gold price is reflecting that sense of uneasiness," said Peter Spina, an analyst at GoldSeek.com. "Iran knows they have leverage here, especially with oil above $70 and the U.S. dollar becoming ever so vulnerable."
So "all indications are that the geopolitical tensions will continue to support gold at this juncture, with the breakdown in the U.S. dollar adding even more ammo to the run," he said.

As I pointed out several weeks ago, gold was a steal at $600/oz. because---

1) Bush may bomb Iran and start WW III.
1a) Israel may bomb Iran and start WW III.
2) The price of oil and gasoline continue to soar and the U.S. has no policy at all to address the dislocations caused by high prices and/or shortages.
3) The 'core' inflation measure is an outright fraud and has nothing to do with 'real world inflation.' (see previous posts).
4) Other metals prices are climbing, also -- silver, copper, aluminum and assorted commodites.
5) Increasing demand for everything from China & India (overlap with #s 1,2 and 4)