All of this unemployment must be impacting demand for goods and services, which may be what prompted Jim Sinclair of jsmineset.com to ask a lot of questions, including ‘Do you really believe that present inflation is demand driven?’

Editor’s Note: You may not have heard of Jim Sinclair unless you’re a serious gold investor. But chances are you’ll hear his name more and more. Investor’s Daily Edge analyst Russell McDougal has been taking looking at short selling and thinks Jim’s about to cause a big shake-up.

Gold prices have been making gains on the back of crude’s ascent and are up for the third week in a row in London trade. This from Bloomberg:

Gold advanced in London, heading for a third consecutive weekly gain, as rising crude-oil prices spurred demand for the metal as a hedge against inflation. Silver and platinum also climbed.

Crude oil traded in New York has jumped 37 percent this year and reached a record yesterday.

Gold peaked at $935 in Hong Kong, and declined from there pretty steadily, right through the NYMEX session on Thursday, before edging a bit higher in the Globex and finishing at $920.40/oz., down $11.40. Overnight, gold has edged higher.

Gold turned in a tepid performance during the New York session on Tuesday, rising well until nearly noon, where it peaked at $883, but then declining from there through the Globex and finishing weakly at $875.60, up $1.60. Overnight, gold has fallen off in London.

Gold got whacked down again yesterday, declining steadily from the far East clear through the New York session on Monday, and finishing at $871.10, down $20.80. Overnight, gold has fallen off.

Gold had a very quiet day during which it recuperated from Friday’s losses and, except for a brief blip up at the open of the New York session on Monday, traded within a tight $10 range, finishing at $917.10, up 90 cents from Friday. Overnight, gold has edged higher.