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Gold markets rose during the Friday session, as all things risk related did. This was more or less a relief rally on global exchanges as the safety trade had been so overextended. With the summertime volumes being fairly light, we don't expect any type of massive breakout and would suggest that the $1640 level should continue to be resistive.
On the other hand, we see the 1540 level as support. We think that this market can be bought or sold at the extremes of this consolidation area. It seems very unlikely that were going to see a significant breakout in one direction or the other until the summer is over. With this in mind, we are bullish of gold for the next day or two, being careful to take profits near the $1625 level. As for selling, we will do it from up in that general vicinity.