[Annunfuiniel]

Yes, it really seems that balrogs weren't very keen to show themselves when their master -and that is Morgoth- wasn't around. For example during M's captivity in Valinor balrogs did the same thing as later did the Moria balrog; dwelt in the deepest and darkest places they could find and stayed quite unnoticed. They came out only after hearing their master's call.

So to the question; I believe that Galadriel could have defended Lorien (with Nenya) against the balrog if it had for some reason sneaked out of its nest. But it didn't.

I would imagine that balrogs weren't too fond of sunlight. It is said in the Silm that all Melkor's servants avoided, yes, even feared the sun like M himself. So I would think that if the balrog had come out it would have happened in the shadows of the night (oh, almost poetic... [img]smilies/wink.gif[/img]).