Gold has had great week. So is this the start of a sustained move higher, or just simple short-covering? You'll have to watch Friday's close to find out.
Gold traded to a low of $1,352.10 on Thursday night after stalling out and failing to make new session highs against $1,375.40 in Thursday's session. The level just below there, $1,374.30, has served as resistance a few times over, and now there is a major trend line meeting the market at that level.
This adds to the headwinds, and helps explain why the market kept stalling out around $1,375 on Thursday.
But it wasn't for lack of trying—gold twice made a run at the highs. Gold reached $1,375.30 the first time, and the second attempt was right ahead of the floor close. When the market caught resistance at the same level, it began to show signs of failure, sending gold into the mid-$1,360s.
(Read more: Gold recovery? Here's one way to play it)
Gold was able to hold support at $1,362.80 on Thursday and Thursday night. But on Friday morning, it chewed through that level, and ran stops below Thursday's low of $1,358.50.