Markets settling on a partial day.

The London Bullion Market Association set the Gold Fix at $831.50, down $33.50 (about 4%) from the AM call. Because of the American Holiday (Columbus Day), there was mixed financial action. The stock markets were open (The Dow up $936), as well as the futures, but the bond markets were closed.

Add to this the furry of "rescue" work over the weekend, including The Euro Group, The G7, The World Monetary Fund, and, of course, The Federal Reserve. The plans varied and it is difficult to say which are having an affect on the markets. I stated this because, on Tuesday the Bond market may take back all the gains of the day, and add more volatility to the Gold contracts.

Aside from this, the first of the auctions for defunct Mortage Default Swaps happens Tuesday, or perhaps the mortages themselves (its diffcult to tell with all the noise and activity). Add also that in the morning President Bush will make some type of speech about the so-called rescue plan.

Tuesday should be quite volatile.

tc