The stock market continues to reject the Administrations plan for rescuing the banks. As a result the financial stocks are down significantly once again, dragging the Dow down 200 points at the open. Gold had been higher prior to the open but it came off $1 in reaction to the weakness in the equity market and a stronger dollar. The dollar is up 86 basis points at 86.64 on the index. Silver is down $.12 and is lightly traded this morning.

Analyst Zachary Oxman, a senior trader with Wisdom Financial said gold has been vacillating on either side of unchanged, meeting some resistance around the $950 level. He said the weakness in equities should help underpin the market. "Today is more about liquidating stocks and getting out of the way of the second leg down in the stock market. Then you are probably going to see gold accumulating again".

The fact is this economic crisis is very serious and the data coming out suggests the economy continues to weaken. While gold is consolidating the recent gains, I think the consolidation may be rather brief. I think next week we may see gold pushing above the $950 level. Once it is above $950, I think $975 is in view promptly. It is important to remember that gold is trading above the key $930 technical area and above a major trend line. This is very significant from a technician's point of view. One trader told Dow Jones Wire Service: "If we hold above $930 today and tomorrow, I think it is signaling a resumption of the bull market". There is excellent support in this market now and according to the Dow Jones Wire Service Technical Analysis the trend for gold is definitely bullish.

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