Friday’s seemingly positive U.S. unemployment report and a weakening outlook on

Friday’s seemingly positive U.S. unemployment report and a weakening outlook on economic growth in Asia, in the overnight session, have pressured the precious metals complex lower. However, the impending fiscal cliff and the worsening situation in South Africa could provide some cushion to the downside for the metals.  We ended last week with a report that showed U.S. non-farm payrolls added 114,000  jobs while the unemployment rate fell to 7.8%. The fact that the economy needs to grow 250,000 or so jobs per month, to keep up with population growth, seemed not to matter and the unemployment rate made investors feel a little less uncertain. Gold, which was flirting with the psychological level of $1800 closed Friday at $1780 and is now trading even lower in the early part of the session. The yellow metal is currently trading at $1773 while silver trades at $33.975…down from Friday’s close of $34.572. According to The World Bank, outlook for growth in Asia was knocked down .4% to 7.2% and concerns surrounding Europe could further weaken GDP growth for Asia through next year. Platinum for January delivery closed Friday’s session at $1707 and has now fallen through the $1700 level…currently trading at $1692. Palladium is down more than 1% and currently trades at $655. However, the escalating situation in South Africa could provide support as the threat of strikes spill over from the mining sector to other industries throughout the country. The South African Municipal Workers Union (SAMWU) has filed a notice to strike while a trucking strike has delayed fuel deliveries around Johannesburg. On Friday, Anglo American Platinum fired 12,000 striking workers.  It’s been reported that 23% of miners in the country are on strike. Have a great day!