Gold is consolidating, but look for a breakout by week's end.

failed at major resistance yesterday, only putting in a high of $1585.8 before selling off to test support at $1,570. Since then, the market has been able to hold $1,570, but has not been able to get the upwards volatility seen early yesterday.

As the Dow Jones Industrial Average soared to an all-time high, gold's luster diminished, as money managers looked to lighten investments in commodities and continue to pour money into stocks.

There has been a lot of volume traded at the $1,579 level, and gold did try to hold it early yesterday, but last night it acted as solid resistance.

So what's the main level I'm watching right now?

It's $1,570. A close below $1,570 will be very discouraging for the bulls, as it will likely lead to continued lower price action.