Regardless of the truth of the matter, the statistics say hat the labor force increased by 2000,000+ jobs in October. And the reaction in markets set gold and silver tumbling. Lurking within the statistics are some sobering facts, though.

 80% of the jobs created were low-wage positions - hospitality, tourism and food service led the charge, such as it is. And, another 100,000 people dropped out of the workforce, bringing the yearly total in that category to roughly 950,000. And that's not including those who can't or won't be counted.

 This unexpected spurt in job creation - 125,000 was the consensus - came in spite of the government shutdown, which magically had no effect on the economy, or at least was not measured in current statistics. 

"Clearly what transpired was businesses viewed the shutdown as a temporary phenomenon and that the economy was still growing and would continue to grow going forward," said Russell Price, senior economist at Ameriprise Financial Services in Troy, Michigan.

 "Those payroll numbers made the folks who buy gold nervous as they did not go in the direction they wanted to see, suggesting that tapering could be back on the table," said Axel Merk, chief investment officer at California-based Merk Funds, which have $450 million assets under management. 

 Gold investors and traders saw the job numbers as an opportunity to hammer gold down, believing that this will spur the Fed to begin tapering now sooner than later. We think that is misguided thinking. 

 Further, there is a growing consensus that there is more structural growth in the U.S. economy, meaning that the slow expansion, while it may not accelerate precipitously will gain more and more momentum. Some economists have said that the rise in China's export surplus last month is an important sign that the U.S., one of China's biggest trading partners, is recovering. 

 The ECB is also softening its monetary policies - a move that has most distinctly had an effect on precious metals prices. A softer euro means a stronger dollar; a stronger dollar means weaker precious prices.

  Due to dollar strength, outside influencer, crude oil, headed back down, once again nearing the $94 mark. Of course, on the bet that the Fed will taper in December or January, bond yields rose dramatically.

Yet, the perception in the markets is that the economy is doing better and better. 

Wishing you as always good trading,

 Gary S. Wagner - Executive Producer

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