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Gold markets got quite a boost on Friday as the members of the European Union decided on a basic outline to keep the banks solvent on that continent. This led to a "risk on" rally during the Friday session which basically saved the week.
The $1550 level looks to be supportive at this point in time, and probably extends down to the $1500 level. We are forming a bit of a descending triangle however, so one has to be very suspicious of any rallies in this market. A break of the $1650 level is what it will take to be confident of the upward momentum. Granted, we got quite a boost on Friday, but we know how quickly these bouts of encouragement can last. With this being said, we are short below the $1500 mark, or long above the $1650 level.