I am 100% Bullish Gold in the long-term but today is not the day to buy.
I have maintained the view that the US Dollar strength is not over yet. If we were going to see the Dollar top out it would have been when the Fed flipped Dovish. My view is that its a “best-of-the-worst” situation. Would you rather own Euros or Yen? Sterling?
Looking at the Gold chart we can see that a Declining Wedge pattern has been present for the past couple months. This morning Gold is selling off to test the lower support. I suspect a break of this level will indicate much lower prices in the coming days.
Keep in mind this selling is in contrast to the US Dollar not moving too much at all. I would expect to see a very strong Dollar as Gold sells but currently we are mostly moving sideways on DXY.
May be an opportunity to go long Gold at a substantially better cost, say $1,200.