Gold price pops $80 on dismal US employment and QE3 expectations

Gold spot price spiked $80 overnight in New York trade off the back of dismal US employment data (after 10+ years of offshoring is there any other type?) which has raised expectations of Uncle Ben goosing the markets with a massive hot QE3 injection. 

Chart from goldprice.org

Massive US Nonfarm Payroll Miss In May Fuels Calls For More QE

Original source

From thestreet.com

Job growth in the U.S. took a huge hit in May, as the rise in nonfarm payrolls (NFP) plummeted for the third straight month. The U.S. Bureau of Labor Statistics (BLS) reported today that employers added 69,000 workers to their payrolls in May, massively missing the median forecast of 150,000 according to a Bloomberg News survey. April NFP figure was revised downwards to 77,000 from its original print of 115,000. Private payrolls rose by 82,000 in May, down from 87,000 in April, while manufacturing added 12,000 jobs compared to 9000 a month ago.

Meanwhile, the unemployment rate rose to 8.2 percent in May, following a dip to 8.1% in April. This reflects a change in the labor force participation rate, as a rise in May by 0.2 percent to 63.8 percent offset a decline of the same amount in April.

The huge miss in job growth adds to growing concerns of a struggling U.S. labor market and economy. This will put further pressure on the Federal Reserve to boost the U.S. economy with a further round of quantitative easing.

Clark & Dawe on QE3