Our energy is in proportion to the resistance it meets. We attempt nothing great, but from a sense of the difficulties we have to encounter, we persevere in nothing great but from a pride in overcoming them… William Hazlitt
(William Hazlitt (1778-1830) is one of the great masters of English prose style. Hazlitt turned criticism into art form. Many of his essays are like conversation poems – witty, profound and eagerly alive to the surfaces of the work of art he is appreciating. No study of the Romantic movement can be complete without a reading of his essays. For too long, he has been regarded as a marginal figure, instead of being seen as the supreme genius of Romantic prose. A radical republican, like Milton, he possessed an epic imagination, which he chose to embody in an eloquent stream of reviews and critical essays.)
A horrendous US jobs report sent the dollar reeling and gold/silver soaring.
March 5 (Bloomberg) — U.S. employers added 21,000 workers in February, less than the lowest forecast amid the fastest annual economic expansion in at least two decades. The unemployment rate held at 5.6 percent and more job-seekers left the work force.
The results follow a January gain of 97,000 that was less than previously estimated, the Labor Department said in Washington, and trailed the median forecast of 130,000 in a Bloomberg News survey of economists. Factory employment fell by 3,000, the 43rd straight decline. –END-
Thus, the two upcoming big events which pressured gold this past week were both non-event duds – those being a cut in European interest rates, which was to weaken the euro, and a positive US jobs report, which was supposed to show a strengthening American economy, thereby giving further support to the dollar. 0 for 2!
The disappointing job news electrified the bond bulls, dollar bears and gold bulls. Bonds rose 3 points at one point, finally settling at 115 28/32, up 2 5/32. The dollar fell to 88.23, down .99, while the euro jumped 1.84 to 123.47. Gold quickly bolted $9 higher before Goldman Sachs and the gold police showed up to pound gold down, as per their usual drill. For almost the entire day, the $6 rule was enforced with gold trading in a range of $6 to $7 higher. However, the buying was so large, The Gold Cartel forces were taken on and gold moved up another $2 as we came into the close.