Gold markets initially rallied during the session on Thursday, reaching towards the $1320 level, an area that has been both support and resistance recently. We have rolled over from there, and it looks as if the market is trying to settle somewhere near the $1315 level. Ultimately, I think the market will probably react to the jobs number more than anything else, so if the jobs number is very strong, and that should help the US dollar in general, which of course will put bearish pressure on this market. Alternately, if the jobs numbers very soft we could see the US dollar fall, thereby putting upward pressure in the gold market. I recognize the $1300 level as a significant support level, and I think that breaking down below there could open the door to the $1275 level. I think the one thing you can count on is a lot of choppiness and volatility in this market, because there is so much uncertainty in the US dollar.
If we do rally, I think a break above the $1325 level could reach towards the $1350 level above, an area that has been resistive and supportive both in the past. I think that the market should continue to go much higher if that happens, perhaps reaching towards the $1375 level, perhaps the $1400 level. I think we are still in consolidation, but most certainly threatening the downside.