Gold Closes At Highest Level Since 1981

The Department of Labor December

Employment Report
showed employment growth was less than expected. Non-Farm
Payrolls were 108,000 versus the consensus estimate of 215,000. However,
November was revised upwards to 305,000. The report led to very choppy trading
in the minutes after its release.

Treasuries initially spiked higher but reversed suddenly and
closed lower. When looking at both numbers together the employment situation
looks good, more than 2-million jobs were added in 2005 and over 400,000 in the
past 2-months. However, the likelihood of further rate increases in 2006 rose
with the report.

The US Dollar fell against the Euro and Yen, pushing the US
Dollar Index to a 3-month low. Gold erased yesterday’s losses to close at the
highest level since 1981.

Chart courtesy of FutureSource Xtra

Crude Oil closed at the highest level since early October.

Chart courtesy of FutureSource Xtra

March Coffee (KCH6) recorded another solid gain,
extending a multi-month high.

Chart courtesy of FutureSource Xtra

Economic News

Employment Report

Non-Farm Payrolls, M/M Change – Actual 108,000 Consensus 215,000

Unemployment Rate – Actual 4.9% Consensus 5.0%

Average Hourly Earnings – Actual 0.3% Consensus 0.2%

Average Workweek – Actual 33.7 hrs Consensus 33.8 hrs

Ashton Dorkins