Another 'crack cocaine' US jobs report, knocks the gold price to...

Another 'crack cocaine' US jobs report, knocks the gold price to the canvas.

The U.S. economy created 272,000 jobs in May, significantly beating expectations. At the same time, wages increased by 0.4%, also beating expectations.

At first blush, the economic data prompted markets to once again shift their interest rate expectations and start pricing a potential rate cut in September off the table.

Although gold has suffered some significant blows, it is not down for the count.

Christopher Vecchio, Head Of Futures and Forex at Tastylive.com, said the employment numbers were not as healthy as the market thinks. He pointed out that there was a massive discrepancy between the government numbers and the household survey. The government numbers show robust gains; however, the household survey showed job losses of 408,000.

At the same time, there was a sharp drop in full-time positions and a rise in part-time employment.

“The data reflects what we are seeing in other reports, that labor market growth is starting to slow,” Vecchio said.

Current gold price $US2292.

Current Shanghai price, $US2424, unmoved by the flim-flam US jobs report.

That is a differential of $US132!

Astonishing, when we have to look to the Chinese, for the 'grown-ups' view of the planet!