Gold Market Commentary For Friday Morning

Gold moved higher in overnight trading as it extends the rebound off last week's low. Golds sharp move higher is fueled by weak unemployment numbers released this morning and a large "camp" of traders that are looking at gold prices being triggered by the "QE III is coming" train of thought.

This mornings move give gold bulls fresh momentum as Stochastics and RSI have turned bullish signaling that sideways to higher prices are possible near term. If October extends the rebound off last week's low, August's high crossing at 1915.00 is the next upside target.

Closes below last week's low crossing at 1701.70 would confirm that a top has been posted while opening the door for a larger degree decline during September.

First resistance is August's high crossing at 1915.00. First support is last Thursday's low crossing at 1701.70. Second support is the 38% retracement level of this year's rally crossing at 1686.80. Gold pivot point for Friday morning is 1826.10.