Friday was a day full of information and reports, starting with the non-farm payroll report early this morning, Fed chairman Ben Bernanke speaking to the Congressional committee about the economic outlook and a rising dollar.
You can find the complete text of Bernanke’s speech on the International Business Times out of Australia here;
The jobs report was a little bit of a dissapointment today, reporting just over 100,000 added jobs when 200,000 were expected.
You can read the department of labors report here;
Bernanke reported positive direction for the economy, just not at a fast enough pace. He went on to say that 2011 would be a better year for the US, but employment numbers are not likely to return to normal for at least four to five more years. He also stated that the Fed rate would remain near zero for some time, and QE2 was a good thing for the economy without ruling out the possiblity for more.
The dollar has been on a run lately, this, we contribute to the evident problems with the Euro. Were it not for the debt problems across the pond, the dollar very well could be going in the opposite direction just as fast.
Not to be a negative nelly, but it reminds me of that scene in the Titanic, when all the remaining passengers rushed to the end of the boat that was not yet submersed underwater.
Ultimately, todays news helped to stabilize gold and the rest of the precious metals. This correction is being looked at by many in the financial industry as healthy and nothing more than a needed correction to establish the next launching pad before the next leg up. This view is justified by the unsustainability of our current direction in the economy.
How long can an economic recovery last without enough jobs?
Consider that as you ponder where precious metals will be going from here.