[DarkMaster]

Your right, Gandalf was gay in that bedroom scene, for he was laughing happily. Homosexual, however, he was not.

Smeagol, I suppose, would be homosexual as well then, for when he was speaking to Deagol he called him "my love". But you see, in the days of old, it was perfectly fine to love another man, even if you didn't want to have sexual relations with them. You loved them because they were a dear friend or relative. Frodo kissing Sam on the head, Gandalf laughing happily, do we see these things as being homosexual?

It's all in accordance to the society that we live and what it has tought us. That loving a person of the same gender is homosexual in any form, and we cannot express any sort of deeper feelings we may have towards those persons as we would then we labelled as a homosexual.