Gold markets have been testing the $1300 level for support, and so far have seen them. I think that if we break down below the $1300 level, it’s likely that the market then goes looking towards the $1275 level next. That’s an area that should be somewhat important, based upon previous action on longer-term charts. I believe that if we break above the $1325 level, the market continues to go much higher. I anticipate that a lot of this is going to come down to interest rate expectations out of the United States. If the jobs number comes into focus on Friday, it’s likely that the number will have a massive influence on the greenback. Obviously, the FOMC statement will as well, but typically does tend to be noise more than anything else. The market then turns its focus on the longer-term outlook, and of course employment is a major factor.
Overall, I believe that the market will probably find buyers, unless of course we get some type of extraordinarily bullish number coming out of the Bureau of Labor Statistics on Friday. If we break down below the $1275 level, this market breaks down significantly. Otherwise, we will probably rally and go looking towards the $1375 level above.