The bull camp has to be a little disappointed with the action in the gold market yesterday as the market managed a nine-day upside breakout off a global risk-off environment, but then reversed course and settled lower despite a continuation of risk-off through the end of the US session.

Furthermore, while risk-off isn't overly aggressive this morning, gold prices are once again showing weakness in a fashion that suggests the bear camp has initial control. While it appears if trade tensions will remain in place, the approach of the US holiday increases the potential for an adjournment of the talks perhaps into December and maybe even into 2020 as suggested by some reports yesterday.

However, the Chinese Vice-Premier overnight said he remains cautiously optimistic that a Phase 1 deal could still be reached and with that news following the actual US issuance of licenses for US firms to deal with Huawei there are signs that talks are still underway. On the other hand, the President is expected to sign the Hong Kong autonomy bill and that could stall forward movement in the talks.

Unfortunately for the bull camp, Citigroup has cut its three-month gold price target by $85 even though they indicated they remain bullish toward the metal over the "medium-term" and they also expect fresh cyclical highs by 2021.

Overnight ETF holdings increased in gold by 18,628 ounces with silver ETF's also adding to their holdings with a purchase of 46,055 ounces. In the action today December gold might drift back down to close-in support at $1,465.10.

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