As soon as the jobs number came out on Friday morning, gold immediately shot $20 higher. This is a clear reflection of the number's weakness.
Nonfarm payrolls data showed that 169,000 jobs were added in August, compared with estimates of 180,000 jobs. And at this point in the recovery, 169,000 jobs is simply not good enough.
And while the unemployment rate dropped to 7.3 percent, that was because fewer people were looking for jobs. Incredibly, the labor force participation rate dropped to 63.2 percent, which is the lowest it's been since 1978.
(Read more: Gold has become a 'Humpty Dumpty' trade)
While I don't think this weak number takes a Federal Reserve tapering of quantitative easing off the table, it could certainly lead the Fed to taper at a slower rate.
Again, after five years of stimulus, these numbers are simply not where they should be. So why would the Fed scurry for the exit now, instead of tapering down its bond-buying program at a more manageable rate?