An exceptionally limited bearish correction overshadows precious metal marketsAmidst yesterday's trading session, precious metal markets witnessed a bearish correctional wave that included metals particularly, gold, platinum and silver. However, to be more specific we see that precious metal markets have witnessed a limited drop for gold while silver and platinum's descend was clearly evident. Today, silver and platinum were able to achieve some gains, although gold remained under immense negative pressure.

The negative pressure the shiny metal is receiving today and yesterday was not able to help it deeply plunge. Yesterday in New York gold managed to record its lowest level around $1218.20 per ounce and close at $1224.10 per ounce; however, negative pressures continue today on gold since as of 02:38 EST it reached a low of $1222.80 per ounce.

Platinum yesterday dropped by 0.80% and closed at $1669.00; while silver also followed and fell by 2.17% to close around $18.92. Despite of the gains recorded today for both silver and platinum, they still are trading on lows compared to the overall week. On the other hand, investors seem to be reaping profits in precious metal markets, while gold is still being demanded by numerous sides as a safe haven and alternative investment; therefore, maintaining gold's stance against levels above $1200.00 this month.

Moreover, US stock indices yesterday were able to record gains minutes away from closing after plunging during the session. Today, we also see that Asian shares are trading on a positive note. In addition, European and EU leaders are defending the euro and Europe's solidarity against expectations that the European economy will fall apart due to deep debt woes spreading throughout the continent. In fact, this managed to help financial markets to regain confidence due to the slight wave of demand on shares and investment assets. In general, investors seem to be witnessing some jitters regarding their trades, as they search for facts regarding the current situation rather than leader promises.

Crude oil on the other hand severely dropped yesterday to reach once again peak levels around $69.00 per barrel; thus, pushing commodity indices into a volatile bearish wave taking the S&P GSCI index into a bearish wave as well recording lows of 14.17 and closing around 487.40 points. In addition, the RJ/CRB commodity index also followed the suit as it dropped by 5.35 around 253.20 points.

The US dollar plunged but its drop did not provide precious metals an incentive to ascend due to the dollar's plummet. Meanwhile, the overall bullish trend for the dollar will prevail, where precious metals are still within the ascending channel as pessimism has currently dropped in financial markets due to the bearish correction occurring in it.

Our expectations for gold alongside other precious metals are in favor a continuing rise, although global economic woes are still prevalent amid the overshadowing debt crisis in Europe, in addition to reduced growth fears for the Chinese economy. On the other hand, the US economy has started to show signs of improvement, although the drop in the pace of improvement in the US and China could cause major negative pressure on financial markets.

We do not rule out bearish correction, but in general the bullish direction will remain intact and will not change unless a noticeable change occurs in current global economic data or performance, which is improbable in the meantime especially as Chinese stock markets are entering a bearish market, alongside the numerous drops witnessed throughout different stock markets around the world combined with the European debt crisis; thus, ultimately leading to higher inflation levels on the medium term.