The price of gold is currently (August 5) just below $1,195 after it briefly touched $1,200 on August 4th. Gold prices have been on a rebound after more than a $100 downward correction from the all-time high in late June of $1,261.

The gold spot rate hit $1,157 just over a week ago on July 28th. However, after hitting the nearly two-month low, the price of an ounce of gold has jumped nearly $40.

Thursday’s New York close of $1,194.70 was down 90 cents from Wednesday’s closing price of $1,195.60. Tuesday’s New York close was $1,185.60.

Gold has been steadily climbing as job concerns and consumer pessimism have once again taken over Wall Street in the last few weeks. The dollar has also been getting pummeled against its global counterparts, usually a pro-gold indicator.

The labor sector remains the biggest hurdle in consumers and investors becoming convinced that recovery is in full swing. Thursday’s labor department report on unemployment was a disappointment and certainly did not help sentiment.

According to the report, the number of new claims for on unemployment climbed from 460,000 two weeks ago to 479,000 last week. The Thomson Reuters economist survey had projected a slight drop in new claims.

The jobless claims report shows employers are still not convinced enough to add jobs. Combined with July’s weak consumer confidence reading, there is still reason for concern about the condition of the US economy.

Enter gold. Assuming there is not another significant push lower in the near future, analysts who indicated $1,150 was near-term support for gold prices and a likely bottom in the short-term, would appear have been accurate.

If gold is able to surge through $1,200 this week or next, another run at the $1,300 level could be quickly in store. Recent surveys of top gold analysts showed that most believe gold prices will surpass this level at least by year’s end. A major surge in gold buying and continued weakness in labor could make $1,300 a reality sooner than anticipated.