A bullish correctional wave; will it prevail in precious metal markets?

Precious metal prices rose throughout yesterday's trading session; where today, the slight rise was caused by profit-taking occurring in trades that had been set up in futures' markets and electronic trading, as investors covered their short positions throughout the Asian session today, at a time Asian indices fairly gained after rising industrial production from China; meanwhile, the U.S. dollar slightly dropped against a basket of foreign currencies.

Gold managed to rise yesterday to 1131.10 and close at $1129.80 per ounce, appreciating by 0.15% in New York; platinum followed and gained by 0.57% and closed at 1423.00; whereas, silver remained with slight losses and closed at $17.35 per ounce.

In addition, today we witnessed that precious metals slightly rose alongside crude's gains from $69 per barrel to return to $70 areas; whereas the dollar is trading within a narrow range. Meanwhile, commodity indices appreciated yesterday; the S&P GSCI index close at 487.85 gaining by 1.76; whereas the RJ/CRB index closed high at 269.52 points.

Gold is presently trading at 1135.10 in NY; whereas silver ascended, making up for losses it had faced yesterday, where it is currently trading at 17.38; finally, platinum is trading at 1426.00 higher by 0.21%.

Meanwhile, gold's sharp fall attracted some speculations. Platinum and silver also followed, where purchasing powers head towards precious metal markets. However, the improvement that shadowed equities yesterday and today, made the liquidity that headed towards precious metals humble, as many investors preferred markets with higher yields. Meanwhile, other investors and speculators still expect further decline in precious metals; thus, reducing liquidity entering these markets.

The dollar however, did not insure the end of the bullish correctional wave, where crude is being pressured to major pressures. These pressures are enough to keep the negative pressure on precious metals, which are likely to keep the overall direction bearish. In addition, we might see metals attempt to ascend today, but the bearish correctional wave still hasn't ended because expectations point to the possibility of the dollar continuing to rise within the bullish correctional wave.