I’ve got the DXY breaking it’s uptrend and putting in a back test now. Presumably, if it rolls over here Gold has a good chance of a decent bounce back – ideally in tandem with the equity market breaking lower.

I’m more so near-term neutral, or don’t have a very strong conviction on whether or not gold will end up holding around current levels, which is the bottom of the 3-month consolidation range since early August (which is the way I am leaning) or if gold goes on make a solid break below this range & continues down to those nearby key support levels on my /GC chart above.

Again, I am leaning towards the former, bullish scenario but there just isn’t enough in the charts to make my convictions very high right now. First, I’d need to see gold hold up & I’d also prefer to see at least some half-decent evidence of what could be a meaningful trend reversal in the stock market, not just the next 2-3% pullback.

No reason to force a trade on gold right now IMO although those longer-term bullish could certainly make a case to add some exposure here around support with stops somewhat below.