Today has forced the hand of Central banks around the world, but mainly the FED. With a dual mandate for fully unemployment and price stability and inherent conflict arises. Many of the World’s economic indicators have been negative for some time, but the icing on the cake was today’s Non-Farm Payrolls which came in well below expectation.
The reaction was obvious ever since gold was below $1600.
In three weeks we will know if the FED will start introducing a new program for assets purchases to save the economy, but in the process devalue the USD and inflate commodities prices.
Below is the “Divergence of 2012″