September Treasury Bonds posted a loss on Friday, most likely tied to profit-taking ahead of the long holiday week-end and the lack of selling pressure on the equities. Friday’s action appears to be just a temporary slow down in the trend. The weakening economy is likely to continue to underpin the Treasuries.
August Gold weakened this week driven lower by the possibility that a slow down in the global economy will lead to deflation. Pressure could continue on gold next week if traders continue to unwind the Long Gold/Short Euro spread. The charts indicate there is room for another $60 break to the downside.
U.S. stocks rallied initially after the release of the U.S. jobs report but this may have been because traders priced in a worse than expected private-sector hiring figure. Nonetheless, the private-sector number missed the consensus so this short-fall is likely to lead to selling pressure at some point during the trading session.