Gold (GLD, quote) continues to remain weak with yesterday’s close of 1284.50.  In early trading the spot price of gold is basically flat. 

Gold traders are clearly focused on this Friday’s U.S. non-Farm Payroll report.

Economists are predicting the report will indicate an improving labor market. If economists are correct in their prediction this could very well send gold below the 1200 level toward our 1100 support level we have been eyeing.

From a technical view the chart for gold is in a clear negative swing and unless the non-Farm Payroll report shows significant retraction of the labor market to slow the Federal Reserve the bears will be in control of the price gold.

The a positive report will spark the bulls to bid up the U.S. dollar (UUP, quote) and in turn add additional pressure on the price of gold.  Remember gold is price is U.S. dollars and the stronger the U.S. dollar…the less dollars it takes to buy gold.

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