It has just been announced that U.S. payrolls rose less than expected in August – just 96,000 jobs were added against an estimate of 130,000. The somewhat muted response to Ben Bernanke’s speech a week ago was due to his comments that although the U.S. economy was in a serious state, the Fed would be looking for further evidence of deterioration before they embarked on further quantitative Easing.
Well, this news will have made the case for QEIII much stronger and that has sent gold up over $20 – it’s currently sitting at $1,725.
It is often said that you should trade the rumour and not the news and we have decided to sell a little gold into this strength (gold that we bought at much lower prices) and book some more profits.
It may be that things are about to get interesting.