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Last week we spoke about the real possibility of the precious metals markets entering a key reversal phase. Indeed, today both gold and silver traded decisively to the upside, to conclude this week on a major high note for gold bulls. The release this morning of the U.S. jobs report was drastically lower then analysts had forecast. Expecting roughly 150,000 new jobs to be added, U.S. non-farm payrolls only gained 69,000 last month. This led to speculation that the Federal Reserve will need to implement another round of quantitative easing. Trading almost $10 lower just prior to the U.S. jobs report release, we witnessed a dramatic and substantial rally as prices moved from negative to positive, trading $70 higher on the day as of the writing of this email. The jobs report has resulted in three major factors coming into play. First, traders who were short gold quickly liquidated positions as the market broke into new territory. Second, "buying the dip" mentality added fuel to the fire. And last, we witnessed a paradigm shift as gold once again came into favor as a safe haven investment. As dramatic as today's rally was, it is my belief that we are witnessing and participating in the beginning of a new major rally in gold and silver. It is not comprised of any single economic component, but rather a combination of global data that is creating another perfect storm. China's economy has been slowing down. The European Union's sovereign debt crisis is unraveling the fabric that holds the member nations together. Add to that the belief that we will see the printing presses begin to run at a rapid pace as the U.S. Federal Reserve and the European Union central banks attempt to stimulate their economies. That will cause a deflating real value out of both the U.S. dollar and the euro. As always, I wish you good trading, Executive Producer | 
