The keys to the current bearish pressure seen in the precious metals markets as well as the commodity complex are twofold.

Allegedly, physical demand in China has sparked the mini-mini-rally we are experiencing in gold, although that is tough to swallow given that prices have been low for some time. It might be that buyers in China are going on a bit of end-of-year spree.

Trading is, as you might suspect, very quiet today. Gold did show some modest strength on short-covering today, although as with all quiet trading days, any movements should be taken with a large grain of salt.