New York, New York (PressExposure) December 08, 2009 -- "Mann International" ; Does the US Federal Reserve now have the excuse it needs to begin tightening monetary policy?
Following the release of figures from the US Department of Labor which showed that private firms shed only 11,000 jobs in November, this is the question on the minds of investors and economists. "Mann International", however, reportedly believe that it is rather premature to be expecting any actual reversal of policy until the 2nd quarter of 2010 at the earliest.
Still, the price of gold slipped sharply as markets took the data at face value as being good for the US and good for the beleaguered US dollar.
Gold dropped from $1225 to close the day out at $1161 a fall of more than 4% but "Mann International" advised clients to hold firm whilst suggesting the drop in prices was likely to be neither deep nor prolonged despite the initial speculation that monetary policy could be tightened.
One of the "Mann International" sources added that the better-than-expected jobs numbers could have a positive impact upon oil prices which jumped on speculation that a positive jobs number could be closer than originally thought.
The firm believes that a return to $100 crude oil could derail the fragile recovery by raising inflationary expectations which would force the Fed to raise interest rates before the economy could accommodate them.