The gold market has rebounded impressively from the overnight low with a rally of eight dollars. While there is some anxiety from global equity market declines, in the wake of pessimistic IMF world growth projections, the magnitude of the declines in equities isn't large enough to justify such a noted bounce in gold prices.

In fact with the US dollar basically unchanged this morning, the magnitude of the gold bounce must be partially attributable to the oversold condition into the overnight low following the big range down washout last Friday. With the US apparently seeking extradition of a Chinese tech sector executive and the Chinese government lashing back at that news, a certain measure of geopolitical safe haven buying interest is to be expected. It is also likely that the slowest Chinese economic growth pace in 28 years overnight has fostered some macroeconomic safe haven interest in gold.

While the strike at a Sibanye mine in South Africa is taking place at platinum facilities it is possible that some minor spillover buying is being seen in gold from that news. Unfortunately for the bull camp exchange traded funds reduced their holdings by 87,020 ounces in the most recent readings but the net purchases this year still stand at 1.29 million ounces.

According to Bloomberg the decline in ETF holdings was the biggest one day decline since December 3rd. Barrick gold 2018 full year gold production was pegged at 4.53 million ounces and that might be seen as slightly supportive of gold as the company's guidance on output was for output of 4.5 to 5.00 million ounces.

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