While macroeconomic uncertainty has not fully exploded in the marketplace this week, developments this week have clearly reignited concerns of slowing and that economic debate should be settled this morning by the US Non-farm payroll report.

Clearly seeing the chance of a long-term trade deal between the US and China erode yesterday certainly increases economic uncertainty which in turn should keep interest in gold, silver, Treasuries and the Yen strong. However, gold and silver should be held back slightly by the favorable Chinese Manufacturing PMI reading overnight!

While we feared that gold and silver would suffer a corrective letdown following this week's widely anticipated US rate cut, the bull camp pulled the market away from chart failure levels this week and turned the technical tables on the bear camp. In fact gold prices held right on the Thursday breakout up highs overnight as if poised to shoot upward again today following the payroll results.

In fact with a string of global data this week already depicting weakness and recent US nonfarm payroll readings showing noted two-sided volatility since June, a disappointing number today (below 90,000) could result in gold and silver prices flashing above the October highs!

An added argument for the bull camp is the reversal in the US dollar this week, with the Dollar this morning already violating the potentially critical 97.00 level in the early going.

Overnight gold ETF's saw a minimal inflow of 9,595 ounces and silver ETF's added 690,566 ounces.

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