Good day everyone. The price of Gold is sitting comfortably above 1320 trying to build a base above the 20 MA. Today we have the US CPI data release which is tipically a market mover becuase it influences the FED´s view on interest rates. Due to a renewed market sentiment associated with interest rates EUR/USD and 10 YR Bond (on price) have corrected down dragging Gold with them and NK threats have become a new "normal" until when they actually do something. 3 scenarios can be considered today.

1. There is a dip on data release today, either to the 20 MA (1315) or Supertrend (1305) and then a bounce back up to resume the uptrend (very dependant on EUR/USD and Bonds reaction)

2. EUR/USD takes a dip below 1.1825 which will take Gold below 1300 (less likely but probable)

3. EUR/USD and gold rally prior to data release (very difficult to trade because it would be just a guess)

My strategy is try take advantage of scenario # 1 and close short positons in the dip (post news) and verify that there is a recovery back up mid morning (NY), the other 2 scenarios are very difficult to trade on  the one hand because a dip below 1300 (#2) on a market that is somehow oversold may have a relief rally to 1320 (I would not close long postions right away) and on the other hand (#3) releasing the short at 1320 before the news can put the long position on a difficult situation on a dip below 1315. Smart trading is a must, 0 profit is better than any loss. Good luck.