If employment data is the litmus test by which the Federal Reserve

If employment data is the litmus test by which the Federal Reserve will determine further stimulus measures then it would seem that last week’s poor jobs numbers would make the decision a no-brainer.  However, markets remain relatively cautious ahead of the Fed’s announcement despite this morning’s report on initial jobless claims (up 15,000 to 382,000). Gold has seen some profit taking but that is to be expected following a ~$40 surge since Friday’s jobs report. The yellow metal corrected a bit on Wednesday but has found good support around $1736 ahead of the Fed’s 12:30 pm EST policy statement.  The PGM complex continues to see the bulk of its recent support coming from the ongoing wage disputes in South Africa’ mining sector. Anglo American Platinum, the world’s #1 platinum producer, was forced to suspend operations at its Rustenburg mine as workers there are being threatened and blocked from going to work. Platinum has added more than .5% in early trading currently trading at $1653 after touching as high as $1660.50.  Palladium has added more than .5% as well and currently trades just shy of its high at $683.50. The precious metals complex should trade in tight ranges until the Fed’s announcement and while there is a chance Mr. Bernanke could avoid pushing the QE3 button, it doesn’t seem likely and there is still more room to the upside. Buckle your seatbelts and hold on to your hats…today could get quite interesting. Have a great day!