SPDR Gold Trust (GLD) closed at $135.41. Middle East violence has resulted in gold rising above $1,407 an ounce. GLD overall option implied volatility of 17 is below its 26-week average of 20, according to Track Data, suggesting decreasing price movement.

Financial Select Sector (XLF) overall volatility at 22; 26-week average is 24.

ISE Sentiment Index-ISEE closed at 114; 10-day moving average is 132.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

"Gold rises with inflation and in times of crisis, like we have today; and, as a result, many countries are buying gold," says Mary Anne and Pamela Aden.

The long-standing resource sector expert and co-editors of The Aden Forecast explain, "They know it's the ultimate currency and gold is again taking its place in the global monetary system, as it has for thousands of years.

"The actions of the world's central banks tell the story. At the very least, this is going to keep upward pressure on gold in the years ahead.

Last month was certainly tough for gold. In fact, it was the worst January in about 20 years.

But as usual, there were many investors who thought that this was the end of the bull run. Hasn't gold risen for ten straight years? Isn't it time for a bear market?

Well, the fact is that corrections are normal, even for gold. And there is no reason to believe that the recent fall-off is yet another example.

After a torrid year, the commodities markets showed some weakness is January. For example, gold fell by about 6%.

So is this a correction or finally a bear market?

Well, legendary investor, Jim Rogers, still thinks that commodities are the best place for your investment dollars (according to an interview on CNBC). No doubt, he has lots of credibility. When others snickered, Rogers started to invest in commodities in the late 1990s. He even wrote a book on the topic.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"Gold and silver were top performers in 2010. In fact, they've been top performers over the past eight to 10 years. We believe this will continue in 2011," says resource expert Mary Anne and Pamela Aden.

The co-editors of The Aden Forecast explains, "As the year was drawing to a close, gold hit an all time record high and silver reached a 30 year high. It was super bullish action. And it's not over yet.

Sometimes trouble and dissatisfaction propel us to move out of the box, to create something new and different. Such was the case of the World Gold Council. Founded in 1987 by a group of mining companies, its primary goal is to promote the use of gold.

For nearly 20 years the organization plodded along with little success. Then Chris Thompson, the group's chairman came up with the idea of creating a gold fund that would allow ordinary investors to buy into the gold market without either buying physical gold or gold futures. So in 2004, the Council created the SPDR Gold Shares Fund, as reported in the Financial Times.