However, once again on the very centre stage is gold

and the other precious metals. Strength in the gold

market, in light of the situation in Egypt et al, and in light

of the fact that gold had fallen right to its 150 day

moving average… which we noted here on Friday with

the chart we put at the top left of p.1 then and which

we’ve put in the same position this morning for what we

think are obvious reasons… is simply reasonable.

Capital is frightened, and when capital is frightened it

moves to gold.

Spot gold traded to $1345 at one point on Friday and it

opened in the Far East there this morning. It has since

settled back to $1334 as we write, trading all the way

down to $1330. We are holding what we refer to as an

“insurance” position in gold and we’ve held that position

for the past several weeks since we turned

demonstrably less enthusiastic of gold earlier this

month. Our turn from gold was fortunate. It was

relatively near the top, but it is time to return to

owning gold now that it has corrected and a goodly

portion of the late longs have been taken out of

their positions. We’ll own gold today, both in US

dollar terms AND further in terms of the EUR and or

Sterling, leaving that final decision to our clients’

individual preferences. We’ll move upon receipt of this

commentary