From Chris Mullen at GoldSeek.com...
Gold Prices rose to $928.60 in London on Monday before falling back off in New York to end with a gain of just 0.21% for the day.
Silver rose to $17.95 and fell to $17.255 before it also rallied back higher into the close, but it still ended with a loss of 2.3%.
The Gold Price in Euros fell to about €575, platinum lost $35 to $2006, and copper fell a couple of cents to about $3.90.
Gold and silver equities fell about 2% by late morning and remained near their lows into the close.
There were no major US economic reports, and there are none due out Tuesday.
Crude oil rose to a new record high over $117 per barrel and US gasoline topped $3.50 as sabotage attacks in Nigeria forced Shell to declare force majeure and cut supplies.
The US Dollar index fell and Treasury bonds rose while the Dow, Nasdaq, and S&P dropped on earnings reports that came in short of expectations, increasing recession worries.
The Nasdaq was able to turn slightly higher by the close on optimism over upcoming earnings reports.
"Gold's volatility is only beginning," says Jim Sinclair, veteran gold trader, at JSMineset.com. "Regardless, the price of gold is going to a minimum of $1650."
That's why Sinclair has recently entered into a one million-dollar wager that "Gold will trade at $1650 on or before the close of the end of the 2nd week of January 2011.
"It's to demonstrate how much confidence I have in my predictions. There is no PR attached to this, nor will I speak with anyone who publishes or broadcasts on this subject. It appears an agreement will be concluded shortly between myself and a Canadian hedge fund as counsel for both parties.
"Right now, right here, the Euro is in charge," he adds.
For Gold Investors, "if you are leveraged there is the possibility that your life may pass in front of your eyes at any time. Those invested on a cash basis [owning physical gold with no credit] have no problems."
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