It seems odd given what has been written about gold as a safe haven in times of trouble that when good news comes the price of gold jumps up. This is not so odd, once you consider the actions taken be the UN Security Council to force a Libyan cease-fire. In one deft move, the UN took a localized civil war & turned it into a international conflict. While the UN no fly zone stops just short of invading Libya they have sanctioned all other means necessary to bring this civil war to an end.
In effect this turns upward pressure on precious metals. Great Britain, France, Spain & the US are all mobilizing to enforce the no-fly zone over Libya. The bottom line: the UN prepares to take this civil war to a higher level by protecting the citizens of Libya from Qaddafi’s revenge. The rest of the markets, oil, stocks & bonds all move up celebrating the cease-fire, only gold is representing the true nature of this event.
Gold is moving forward because many realize from recent events that a no-fly zone often predates an impending invasion/regime change. The world is not a safe place and last nights UN imposed no fly zone indicate it is not getting any safer.