Some US traders come back to work today to find the other shoe has fallen overnight with gold trading a lot lower. Nosediving oil prices have reduced inflation pressures dramatically as can be seen in the big decline in Canadian raw material prices announced this morning. Gold losing its shine as an inflation hedge has ripped the rug out from under the price and this could only be the beginning of trading action in gold for the last few days. On Sunday, Switzerland is holding a referendum which if passed would force the SNB to stop selling gold, call back in gold it has loaned out and increase gold’s percentage of its asset base to 20%. Polls suggest, however the Yes side is losing so far. Even though the probability of a Swiss No vote is well known among traders, the likelihood that OPEC would do nothing yesterday was also well anticipated and didn’t stop a big selloff from happening following the announcement anyway. Speaking of crude oil, so far prices have stabilized but WTI could still come under pressure today as the margin calls that should have gone out in the US yesterday and didn’t because of the holiday start to be made. Because of this forced selling may drag on for longer than usual and could impact oil trading into the early part of next week. US indices appear set to follow their overseas counterparts moderately lower on what may be another light day of trading. Energy stocks appear vulnerable in the wake of yesterday’s crude oil drop, while retailers could be active as traders respond to Black Friday activity. Corporate News BCE has agreed to acquire Glentel, a mobile phone distributor for $670 million. Economic News Economic reports released overnight and this morning include: According to IBM, US online retail sales on yesterday’s Thanksgiving holiday were up 14.3% over last year although the average transaction size declined by 1.8%. Canada Sept GDP 2.3% vs street 2.2% Canada Q3 GDP annualized 2,8% vs street 2.1% Canada industrial prices (0.5%) vs street (0.4%) Canada raw material prices (4.3%) vs street (2.5%) Eurozone unemployment rate 11.5% as expected Eurozone consumer prices 0.3% as expected Eurozone core CPI 0.7% as expected Japan unemployment rate 3.5% vs street 3.6% Japan consumer prices 2.9% vs street 3.0% Japan retail sales 1.4% as expected Japan industrial production (1.0%) vs street (1.7%) Japan vehicle production (6.3%) vs previous (2.6%) Japan housing starts (12.3%) vs street (15.0%) UK Nationwide house prices 8.5% vs street 8.6% Germany retail sales 1.7% as expected Spain retail sales 1.0% vs street 2.0% Sweden GDP 2.1% vs street 2.3% Norway unemployment rate 2.6% vs street 2.7% Norway retail sales 0.6% vs street 0.4% Italy unemployment rate 12.8% vs street 12.6% Greece GDP 1.9% vs previous 1.7% Greece retail sales (0.9%) vs street 4.8% Brazil GDP (0.2%) vs previous (0.9%) India GDP 5.3% vs street 5.1% NZ building permits 8.8% vs previous (12.2%) NZ ANZ activity outlook 41.7 vs previous 37.8 NZ ANZ business confidence 31.5 vs previous 26.5 Economic reports due later today include: TBA Black Friday anecdotal reports on sales through the day Sunday Swiss referendum on SNB gold holdings Sunday Manufacturing PMI reports for China, India, Australia and others