Gold is up $3 to $1667 today after touching a 5-day low of $1657 overnight.

It is encouraging for gold bulls that gold remains near its four-month high and has stubbornly held on to last week’s gains.

It will be interesting to see if these levels continue to hold ahead of Jackson Hole or if jitters about Bernanke spark a round of profit taking.

One event to watch will be tomorrow’s revision to Q2 GDP. The consensus is for an uptick to 1.7% from 1.5% but estimates range from 1.2% to 2.2%.

Something on the high side could dampen QE3 expectations and hurt gold but it depends on the composition of the revisions and what it says about growth later in the year.

If gold can remain above $1660 in the lead-up to Jackson Hole, it tells me the market is confident in a dovish Fed and likely to climb higher.

Scattered resistance sits from the recent highs up to $1700.