Perhaps rather foolishly (since price returned to my entry level) I am still long gold and will be paying strong attention to the next up wave.
I am noticing a number of things here that have me on alert:
1- On the weekly chart, the current Up-wave (C) is, so far, shorter both in duration and extent than the previous upwave (A).
2- On the monthly chart, price poked above the long term downtrend but was hammered down by supply (black line on chart)
3- The price action on Silver looks very discouraging for the bulls.
4- The latest COT data showed a huge increase of commercials Long contracts which tends to be a negative omen for the price of gold.
If the next daily upwave (currently in play) is feeble and results in a lower high, I would be exiting my longs and looking to go short.
If, on the other hand, the upwave is strong and breaks above 1300 the confirmation to stay long is in place.
If Price makes a new low on the daily, I will exit all gold longs, stop at 1259.