USD has gained against the EUR this morning

As the USD has gained against the EUR this morning, the precious metals complex as a whole has become weaker. Gold was able to muster the strength to make a high of $1626.80 during Asian hours, but was met with strong resistance ahead of the 200 DMA ($1628.90). Shortly after the London markets opened both industrial and precious metals were sold. Once again, increased concern over Italy's debt issues has made the USD more attractive against the EUR and has helped spread the "risk off" trade across commodities and equities alike. Platinum, Palladium and Silver will likely remain in a range bound trade until we see gold make dramatic move in either direction. At the moment, gold remains in the range between $1593 and $1628.90. Should we see a close on either side of this range we may see some significant movement. Initial Jobless claims were slightly better than expected this morning, while Continuing Claims were slightly higher than expected. The big number of the day was the ADP Employment which came in at 325k, nearly 86% above expectations. December has traditionally been the best month for ADP over the course of the last few years, however this gain should not be overlooked. The attention is now focused on the Euro Zone unemployment #'s and the US NFP's coming out tomorrow morning.