Semi-Holiday Trading, Short Covering

There was a federal holiday in the United States to mark the service of veterans who have served in American wars. Not everything closes but many people like to take the day off. Very cold weather is settling over the country, a bit early in the season, as well.
That adds up to small volume and larger, quicker swings in trading prices.

Short coverers, sensing this took advantage. Gold bounced up to 1173 but has since settled back down, up not quite $13. Dollar weakness added to the tick up.
These factors intersected with the equities taking a breather for the day, although they did remain in record territory.

Oil fought back against its skid and closed modestly up for the day, while the 10-year U.S. bond yield was unchanged. Really, except for gold, markets felt directionless. And even gold's direction was based on opportunism.
We look, therefore, to see gold reverse itself on Wednesday when all the players are playing.

Behind the scenes, too, there are Russians and their financial people buying gold, hoping that even should gold go lower, it will be safer than rubles, which are on the brink of a meltdown, due to the government freeing the currency to float. It's a sort of legal way to smuggle your money out of Mother Russia.
There was also renewed demand from Asia, most importantly in China.

"Retail demand is very strong since prices came off," Heraeus trader Alexander Zumpfe said. "Overall, physical demand is lending some support - Asia is also showing steady buying interest, though not on extreme levels."

EDITOR'S NOTE: Please be aware of this month's travel and holiday schedule, which will cover the period from the 13th through the 30th. Thanksgiving falls within those days. Additionally, during that period, I will be in Indonesia, lecturing to key gold traders there. The time differential will make it necessary for me to send out the regular fundamentals (upper portion) of the newsletter on a at the usual time. Videos timing may be different. You will receive special notification immediately following the release of a new video - on the website. Of course, trade alerts will not not change. I will monitor markets as usual and have all equipment necessary to produce videos. Thank you.

Wishing you as always, good trading,