Precious metals are the most volatile market, and there are a few reasons for this. First, the sun never sets on the precious metal market; it trades 24/7 during the week. The whole world has the opportunity to buy PM at any time they wish, and many jump at the chance to get the PM cheap. Look no further than Asia. Asia tries hard to never let the price get too high, and they will sacrifice their equities to buy it. Next, it is horribly manipulated. The manipulation occurs first by paper being leveraged by ETFs et al (currently 100 to 1), then being shorted by Majors, JPM et al (naked obviously). Throw in mindless "investors" who can not comprehend what is valuable about gold (above all else) and it is a "perfect storm"...for the US government.
The US government enforces this policy because it gives the dollar leverage. Gold and silver is monie, but the fascist do not want anyone to believe that. The need is to have dollar strength so oil trades at a governable price. This worked because the House of Saud, as the swing producer, had a deal with the US, signed by FDR, to trade oil for dollars. Now there is no swing producer, and all bets are off.
Gold vigilantes are the other side of the coin. There are those that know the real truth, and have drawn a line in the sand as far as the manipulation. The movement is growing. There is massive weight on both sides. It is my opinion that the truth will prevail, as I believe it always does.
As for how gold will trade the rest of the week, I am staying with my Sunday night prediction. That Sunday prediction has been 100% right (snicker, snicker) so far. For tomorrow and Thursday, I think gold will trade between $1395-$1410. On Friday heading into NY trading, I think the price will be around $1410, and then I think we will get a $30 to the upside. $1440 by the end of Friday.
Sidebar: If you ever want to know when the bottom is going to fall out of equities, look for the PM Trinity (Gold, silver, platinum) to all be falling straight down at the same time. Every single major crash last year saw this correlation.