Investors are aware that Gold is a safe haven, but Warren Buffett, a well-known American business magnate, has made it apparent he does not invest in Precious Metals. However, Michael Pento, founder of Pento Portfolio Strategies, gave some interesting facts regarding why “Gold bugs” are choosing the alternative asset rather than following advice from Warren Buffett or Bill Gates. Pento said, “The stock market has gone nowhere in nominal terms in 12 years. It makes sense as a default under the current conditions of negative real interest rates to own something that keeps you afloat, that preserves your purchasing power. I would ask Mr. Buffett if he could own a lone share of a representative of the S& P 500, or would he rather have the equivalent of an ounce of Gold? Which investment has done better over the last dozen years?    The answer is clear: Gold.”

Gold production in China has continued to increase, and that country likely will be the world’s biggest Gold market in 2012 as physical demand persists. According to the World Gold Council, China’s Gold consumption in 2001 was 203.1 tons, and in 2011 the amount had more than tripled to 769.8 tons, showing the economy is expanding with a market interested in Gold.  The Chinese people are encouraged to purchase Gold  for retirement savings, said Zhang Jianhua of the People’s Bank of China. “The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign exchange portfolio and purchase Gold assets when the Gold price shows a favorable fluctuation,”' Jianhua said.

The outcome of elections in Greece was chaotic, sparking several protests. Investors have found this as a buying opportunity for the euro, because it is possible that Greece may be compelled to leave the union, thereby causing the euro to strengthen. “Long term,  a Greek exit would be bullish for everyone,” said Mitch Goldberg, president of ClientFirst Strategy. “Germany will support Greece to make the transition as smooth as possible. The best way to strengthen a chain is to remove the weakest link.”

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold - $1,639.90 - Down $6.30.
• Silver - $30.12 - Down $0.36.

With the Gold price slightly down, that Precious Metal is in need of a pick-me-up.  One of the leading Gold importing nations has done just that.  In March, retailers in India went on strike as the government added new taxes on them. Today, that tax has been removed. “Gold demand will likely improve. It’s a good decision,” said Prithviraj Kothari, president of the Bombay Bullion Association.

China’s economic outlook has improved over the past two months.  Inflation and the loss of credit supply have been the main factors in that country’s woes. With the lower oil prices, manufacturing costs are down, and production is up -- even with a slower demand. Another factor is that China’s retail sales continue on pace. “We think April data would show that economic activity is rebounding modestly,” UBS analysts said.

With the stock market slipping and the weak economic growth in the United States,  the Federal Reserve will not take off the table the idea of another round of monetary easing.  The economy added about 115,000 jobs in April, and that number was below expectations. “In line with expectations was a lame mediocre number. Middle-of-the-road is not good enough in terms of the economy, and that’s why the market is down,” said Peter Boockvar, market strategist with Miller Tabak.

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold - $1641.00 - Down $5.20.
• Silver - $30.19 - Down $0.26.

With the gold price slightly down, the precious metal is in need of a pick me up.  One of the leading nations of gold imports has done just that.  In March retailers in India went on strike as the government added new taxes upon them. Today that tax has been removed. " Gold demand will likely improve. It's a good decision," said Prithviraj Kothari, president of the Bombay Bullion Association.

China’s economic outlook has improved over the last two months.  Inflation and the loss of credit supply have been the main factors in the country’s woes. With the lower oil prices manufacturing cost are down and production is up, even with a slower demand. Another factor is that China’s retail sales continue on pace. " We think April data would show that economic activity is rebounding modestly," analysts at UBS said.

With the stock market slipping and the weak economic growth in the U.S.A.,  the Federal Reserve will not take the idea of another round of monetary easing off the table.  The economy added around 115,000 jobs in April and that number was below expectations. “In line with expectations was a lame mediocre number. Middle of the road is not good enough in terms of the economy and that’s why the market is down,” said Peter Boockvar, market strategist with Miller Tabak.

At 1:00 p.m. (EDT), the APMEX precious metals spot prices were:

• Gold -$1641.00 - Down $5.20
• Silver -$30.19 - Down $0.26

Precious metals are up in afternoon trading. Gold in particular is up after the rather disappointing non-farm payroll report was released. The weaker economy spurs thoughts of possible quantitative easing being back on the table. Fed Chairman Ben Bernanke " had said QE3 is going to be dependent on the incoming data. Next time when he speaks he's going to reemphasize that the Fed is willing to do more," said Axel Merk. He also added, “That's one of  key reason why gold is up  because we have had a very long period of consolidation.”

The disappointing jobs data actually had a double edged impact today, as unemployment actually dropped, but not very many jobs were actually added.  Oil dropped  to less than $100 a barrel for the first time since February. “We have broken through key technical levels here after a disappointing employment report and the PMI number from Europe which suggest that the recovery is stalling and could affect energy consumption," said Gene McGillian.

The stock markets also experienced their worst week of 2012 on the jobs data news as well. This is the third day of losses within the stock market in a row. “The  data point to sluggish job growth, declining labor market participation and for those employed, stagnant purchasing power,” Mohamed El-Erian, the chief executive officer of Pacific Investment Management Co., said in an e-mail today. “Consumption is less dynamic at a time when headwinds from Europe and a potential fiscal cliff are still material.”

At 5:15 p.m. (EDT) – the APMEX precious metals spot prices were:

• Gold - $1,644.10 – Up $8.30.  
• Silver - $30.34 – Up $0.31. 

Precious Metals prices recovered from early losses this morning after the  release of April’s employment report by Automatic Data Processing Inc.  The report showed that the economy added 119,000 jobs in April, while economists had anticipated the addition of 160,000 jobs. The unemployment rate fell by one-tenth of a percent, to 8.1 percent, but that was attributed completely to people who gave up searching for jobs. Stock futures fell after the report was released.

If investors thought that the Greek debt crisis had been resolved after the deal reached earlier this year,  they should think again. An election Sunday threatens to throw that nation off balance. Analysts at UBS said, “Part of the problem is that the Greek government appears to be running out of money fast. According to the IMF (International Monetary Fund), it has gone back into arrears with suppliers, so the need for the Greek government to implement existing austerity plans and detail future cuts -- in order to receive disbursements under the second aid plan -- is acute.”

In related “stories-we-thought-were-dead” news,  Egyptians are rallying for a free presidential vote. Egypt was the spark for the Arab Spring, as protests raged against the longtime rule of President Hosni Mubarak, eventually resulting in his overthrow. Egypt has been under military rule since, and protesters are worried that the generals will manipulate the coming elections.

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold – $1,637.70 – Up $1.90.
• Silver - $30.09 – Up $0.06.

• Gold - $1,637.60 – Down $17.40.
• Silver - $30.12 – Down $0.54.

As active members of the Federal Open Market Committee shared their thoughts about the American economy and Gold demand decreased in India, the yellow metal took a step back in price this week. India has imported 90 tons less in April than it had the same time last year. The number of jobs that were created by American employers was less than expected. Frank McGhee at Integrated Brokerage Services, LLC, voiced his opinion. McGhee said, “The market is clearly worried. The physical demand has also been very weak.”

Standard & Poor’s rating agency has decided to upgrade  Greece's long-term credit rating  from selective default to sub-investment grade triple-C today, based on the success the eurozone nation experienced with its dreadful bond swap. “The CCC rating on Greece reflects our view of the recent reduction in government debt following the restructuring, the reduction in debt servicing costs as a result of the exchange, and the increased average maturity of the central government debt stock,” S& P wrote in a release.

At 5:19 p.m. (EDT), the APMEX precious metals spot prices were:

• Gold - $1654.70 - Down $8.70 
• Silver - $30.67 - Down $0.29 

Precious metals have remained relatively steady in overnight trading. Stock markets are down on less-than-stellar jobs data. A popular topic among investors is the steadiness that precious metals prices have had over the past few days and weeks. One metals strategist said, “Gold will probably be  sitting in limbo  for a few more days. … It is rather inversely sensitive to positive numbers, as evidenced by the ISM number overnight.” A metals dealer in Hong Kong said, “Investors are standing on the sidelines of the market, waiting for the uncertainty around the U.S. economy, eurozone and QE3 (third round of quantitative easing by the Fed) to clear up.”

China is clearly upset  about the United States’ handling of a Chinese dissident, having allowed him to stay in the American Embassy for at least six days. How this plays out during meetings over the next couple of days is anyone’s guess. While Secretary of State Hillary Clinton said, “I am pleased that we were able to facilitate Chen Guangcheng’s stay and departure from the U.S. Embassy in a way that reflected his choices and our values.” But the Chinese government was quite angry, saying, “The U.S. method was interference in Chinese domestic affairs, and this is totally unacceptable to China. China demands that the United States apologize over this, thoroughly investigate this incident, punish those who are responsible, and give assurances that such incidents will not recur.”

Most economists had expected 170,000 new jobs would be reported for April, but according to ADP data released this morning,  only 119,000 jobs actually were added. Many economists said the warmer winter affected job additions during the last few months. Economic adviser Joel Prakken said, “There is some evidence that unusually warm weather boosted employment during the winter months, with a ‘payback’ now coming due.”

At 9 a.m. (EDT), the APMEX precious metals spot prices were:

• Gold - $1,655.30 – Down $8.10.
• Silver - $30.56 – Down $0.38.