Make no mistake, today’s jobs number was really awful and has skewed the prospects for the economy in the direction of stagflation. Wages up and jobs down is not a good sign given the commodity price pressures that have yet to be fully passed through. Note that gold is taking the weak economic news in stride, which is not surprising given that the news does little to assuage inflation fears and it also has led to a huge dollar slump.
I am interested to watch the move down in oil, because today’s move downward tells me that demand is coming back as a topic of conversation for oil. However, the fight between supply and demand is not likely to be resolved soon, so I expect the 90-100 trading range to continue.