The gold market initially tried to rally for the session on Thursday, but as we moved along, the same barrier seems to be causing a bit of trouble. With this, I think you are likely to see a bit of a pullback in order to build momentum again.

The gold market has pulled back a bit from the $2,715 level, an area that I've been watching, as the PPI numbers came out a little bit hotter. In the full reading, the core PPI numbers came in as expected and the weekly unemployment claims in America came out a little higher than necessarily anticipated as well. So, this all leads to a little bit of questioning. But really, at this point, I don't know that much has changed. I suspect this pullback will attract a certain amount of attention, and people will be interested in it being a trade.

The 50 day EMA comes into the picture offering support, assuming that we even get down there and of course, there are plenty of geopolitical reasons out there to believe gold will continue to be a market that a lot of people want to be involved in to protect their wealth. All things being equal, I do think that we eventually break out, but we need to pull back just a little bit in order to pick up that momentum.