Gold rose sharply soon after the poor unemployment report as the dollar fell and equities have again come under pressure with sharp falls in international markets. The US economy appears to be slowing quite sharply as seen in the unemployment rate unexpectedly rising to 6.1 percent in August, its highest in more than 4 1/2 years. Employers cut payrolls for an eighth straight month and labor markets showed signs of accelerating decline. A slowing US economy will likely lead to a lower dollar in the medium term which bodes well for gold. Foreign investors are less likely to buy US equities and bonds should the US fall into a recession, particularly if that recession is serious and accompanied by inflation and stagflation. With gold demand internationally remaining extremely strong due to inflationary and macroeconomic concerns and uncertainty regarding the outlook for financial markets internationally, gold remains oversold and will likely resume its upward trend in the coming weeks.