EVN $3, page-63

VERY ENCOURAGING STRENGTH IN POG.

Well, there’s one for the books! And a new and stronger chapter begins in the continued resilience of the gold price. The events of the last 2 hours have been nothing short of incredible:

Non-Farm Payrolls came in at $287k (vs. 180k ave. expected), resulting in a 4 Sigma beat (they did find those 200k waiters, who apparently are all sharing a flat in Brooklyn)

Gold dropped $33 in 5 minutes ($1,358 to $1,335)

Within 30 minutes gold had rallied back $35 to $1,360

Rand Gold plummeted 3% on the London Exchange, then retraced to be in the green – currently up 0.16%

Then the North American markets opened:
The GDX is actually up 0.64%
OGC (Toronto) actually opened in the green and is now down 0.94%

As you’d expect, stock markets cross Europe, England and America are rallying: CAC up 1.85%, DAX up 2.15, FTSE (London) up 0.97%, Dow up 0.90% and S&P500 up 0.97%

BUT, and it’s a big BUT…it hasn’t impressed the bond markets as much as equities (yields continue downwards on the 30YR and Treasuries 2s10s)

Bloomberg View Columnist, Mohmed El-Erian, has just started using the phrase ‘Goldilocks number’ (@12.08am)

Only months ago, this kind of NFP print and the resultant market rally would have had an extremely adverse effect on the price of gold.

I don’t want to get ahead of myself, as it will most likely be an arm-wrestle all night RE the POG (currently back down to $1,354.70). While things may deteriorate somewhat from here, I felt compelled to report such a relative show of strength in the first few hours. If gold can hold on to this position, I would hope for a relatively shallow and short-lived pullback. In any regard, this all seems to bode very well for the longer term.