Here are the Friday morning headlines we are watching that are impacting precious metals.

Overnight, selling out of the Far East brought the yellow metal down to $1,194.50 in the April CME Futures contract.

This morning, gold now seen gaining momentum, reversing the most recent sell bias indicators trading over the $1,200 dollar level this morning.

The reason for the recovery this morning is a weaker dollar and softer ten-year treasury yields.

The strongest component in the gold price is the action in the U.S. dollar vs. other world currencies.

The February jobs report revealed that 235,000 jobs were created. The street was looking for 200,000.

ETF outflows continue across all four metals.

CME FED watch tool is calling for a 90.8 percent of a 25 basis rate hike at the March Fed meeting next week.

All eyes still on the upcoming elections in Holland, France, Germany and Korea as potential gold price movers.

Equities are liking the jobs report, calling for a higher opening this morning.

One financial advisor said to me this morning, “The equity markets are like a game of Texas holdem. Players think they have the best hand and are all in the game. I haven’t had one call asking for anything else other than equity action.”

My take is that this rally in both gold and silver will be short lived as nothing fundamentally has changed from yesterday. The weaker dollar just chasing out some nervous shorts. I expect the $1,200 dollar level to be tested and traded thru later in the day.

Have a wonderful weekend.

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