Earlier this week, private sector employment and jobless claims data indicated weakness in the labor market. Reports on the manufacturing and services sectors also disappointed.
(Read More: Unemployment Rate Falls, but Hold the Champagne)
But immediately after the jobs data was released on Friday, gold rose to a session high of $1,571.91 and was last 1.1 percent higher at $1,568 an ounce—still down about 2 percent on the week and heading for its second week of declines.
So why was gold finally able to push higher?
The theory here is that the series of weaker-than-expected data points have made it slightly more likely that the Federal Reserve will have to up the ante and increase qualitative easing, a monetary policy in which the central bank prints money to buy government securities or other types of securities from the market.
(Read More: Forever Fed: Jobs Blues Sets Up Eternal Easing)
Our long gold trade from Thursday's "Futures Now" show worked nicely, as we had an exit level of $1,575, and June gold traded up to a high of $1,576. However, the quick rejection of those higher levels leads me to believe that there are definitely people who believe that the long-term story in gold has changed and who are looking for strength to sell into. At the moment, I cannot argue with them.
If June gold futures trade up to $1,585, I would consider this an opportunity to sell the market for a retest of the $1,537 lows. Baked into this theory is the assumption that the economic data are experiencing a spring swoon. If the data begin to deteriorate more quickly, we should see the market patch up its differences with gold as a safe haven vehicle. The signal for this reconciliation would be a settle above $1,588.
— CNBC.com and Wires contributed to this report
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