Following Friday’s (August 6th) strong jobs report there’s a lot of data for us to digest going into the
traditionally slow summer months. We saw 943K new jobs created and unemployment slide to 5.4%,
while crude prices showed a rebound as the world’s largest economy flexed it’s muscle. And gold didn’t
stand a chance, as the report sidelined all needs for a safe haven and didn’t do much for inflation
hedges. Gold could have further downward pressure as Fed tapering bets grow and from a technical
analysis standpoint that all important psychological level of $1700 is now in sight. Confirmation of
events was clear as the USD Index rallied above 92.50. It’s interesting to see how the Index bounced off
the first fib retracement (38.2%) of 91.77 at the end of last month. It’s the technical that give us the
when, while the fundamentals give us the why.