NEW YORK ( -- The U.S. added only 88,000 jobs last month. This represents less than 50% of the consensus estimate of 190,000 jobs added.

The data sent stock index futures plunging, and gold immediately saw a large pop to the upside. The data weighed on the U.S. Dollar Index ( DYX) which traded moderately lower while the euro currency gained traction and found itself once again testing the $1.30 level. Crude oil continued its recent slide to trade moderately lower as well.

Once again, spot gold was able to hold the $1,550 area and bounced sharply higher into the mid-$1,570 range. The SPDR Gold Shares ( GLD) traded higher at $152.31, up 1.34%.

It is quite likely that the quick pop in bullion was due not only to short-covering but also to bargain hunters willing to be buyers at the $1,550 area.

Whether or not today's rally has legs is still up in the air. It would seem, however, that the Federal Reserve will now have to hold steady on its bond purchases for the foreseeable future, and that the removal of stimulus is unlikely given the uncertainty surrounding the jobs market.

This may help weaken the dollar and thus help give bullion prices a lift. We spoke in previous posts about how this report may determine gold's near-term future. For now, it seems as if the market has spoken. Perhaps this data will trigger the much anticipated and long talked about correction in equities. That could potentially be bullish for gold as well.

For right now, the bullion bulls have their work cut out for them undoing some of the technical damage the market has suffered in recent weeks. There are likely a lot of short positions remaining out there, however, and many possible catalysts for gold being bought up again --thus sending those shorts scrambling to cover their positions and in turn adding fuel to the rally. We shall see.

The bottom line for now is the market continues to be rangebound from the $1,550-$1,800 area until proven otherwise.

Please visit our Web site for updates on the gold market and useful information for purchasing the physical metal.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Matt Zeman is a trader at Kingsview Financial. He began his trading career as a runner in the grain pits at the Chicago Board of Trade before becoming an arbitrage clerk. Eventually he started trading equity options and stocks. Matt now is a full-time futures broker and also authors a blog for gold investors at Appreciate Gold. He has been a frequent guest on CNBC, Fox and Bloomberg, and provides his views on the stock, bond and futures markets for financial media including Dow Jones, the L.A. Times and The Associated Press. Matt is a member of the Chicago Board of Trade, and carries series 3, 7 and 66 licenses.