Gold jumped $15 in a flash to $1274 after the ADP jobs data earlier today but has given back all the gains and more, down to $1256 and virtually unchanged on the day.

I like gold as a hedge in case US economic data continues to deteriorate but any time a rally fizzles so easily, it’s a warning sign.

That said, the slow, creeping series of higher highs and higher lows is intact and that’s the dominant feature so far in 2014. We are right in the middle of the $1230-$1280 range.

Another level to watch is the 100-day moving average. It’s been challenged three times in the new year but gold hasn’t been able to close above.

Gold higher highs

Gold higher highs, higher lows and 100dma