Gold has a big reversal underway this morning. Selling off to start the week after the Swiss proposal to make the SNB buy more gold went down in flames, gold has staged a big turnaround in the last few hours rebounding from its low near $1,140 back up toward $1,180 on what appears to be short covering. With India dropping import controls, many traders may be thinking that the worst may now be over for the gold market in the near term, and taking profits on short positions. Silver is also on the rebound this morning along with copper as some of the recent pressure comes off metal markets. Metals may remain active through the week ahead of the ECB’s big decision on whether to add even more stimulus or not coming on Thursday. Stock indices around the world (except for the Nikkei) are trading sharply lower to start the month. Mixed manufacturing PMI numbers and disappointing US Thanksgiving weekend may get much of the blame for the decline but liquidity may be a bigger, unheralded factor. Following the end of the Fed’s QE1 and QE2 programs, the worst periods for stocks were weeks 4-7 and weeks 12-13 after the central bank stopped propping up stock markets with hot QE money. We are now starting week 5 since the end of QE3. The liquidity effect, however, may be partially offset by a positive seasonal effect as December has historically been a strong month for stocks. The battle between Santa Claus and the post-QE hangover could drive significant action right through this month. Currency trading finds NOK, SEK and GBP the top performers as Norway, Sweden and the UK all posted manufacturing PMI that beat expectations. Later this morning, PMI reports for the US and Canada could influence trading in USD and CAD. Corporate News Black Friday didn’t go as well this year according to the National Retail Federation The total number of shoppers fell by about 7 million or 4.5% from last year to 133.7 million. Spending over the four days by 11.3% to $57.4 billion. Economic News Economic reports released overnight and this morning include: Swiss Gold referendum the proposal to boost SNB gold holdings to 20% of assets from about 8% failed with the No side winning by a 77-23% margin Reserve Bank of India removed import controls from the gold market last Friday in a bid to stop smuggling Manufacturing PMI reports include China official 50.3 vs previous 50.8 China HSBC 50.0 as expected Japan 52.0 vs previous 52.1 Australia 50.1 vs previous 49.4 India 53.3 vs previous 51.6 South Korea 49.0 vs previous 48.7 UK 53.5 vs street 53.0 Germany 49.5 vs street 50.0 Eurozone 50.1 vs street 50.4 France 48.4 vs street 47.6 Spain 54.7 vs street 52.1 Italy 49.0 vs street 49.4 Sweden 52.7 vs street 52.5 Norway 51.3 vs street 50.5 Greece 49.1 vs previous 48.8 Russia 51.7 vs street 50.0 Brazil 48.7 vs previous 49.1 Italy GDP (0.5%) vs street (0.4%) Australia inflation 2.2% vs previous 2.3% Australia commodity prices (18.6%) vs previous (16.9%) Japan capital spending 5.5% vs street 1.8% Japan vehicle sales (13.5%) vs previous (9.1%) Economic reports due later today include: 9:30 am EST Canada manufacturing PMI previous 55.3 9:45 am EST US Markit manuf PMI street 55.0 10:00 am EST US ISM manuf PMI street 58.0 FOMC members Fischer and Dudley speak today