I am expecting gold’s daily stochastics to hit oversold before the next leg up begins.  I personally believe it will constitute the lowest risk entry for gold if you are looking to add to an existing position.  It also seems doubtful for anything to kick off prior to the May FOMC in 2 weeks.

All that being said, you never know.  If I didn’t have any position, or a small position, I would probably just bite the bullet and add here, with the full understanding that there is a very real risk of a drawdown over the next few weeks.

A lot may hinge on the regional banks, as that is what kicked this all off.  FRC, for example, has been consolidating its massive March drop, and while it could go to zero at any time, I have a hunch the 50 day MA needs a little more time to catch down to price before the next shoe drops.  I’m not even expecting a tag of the 50 day MA, just it getting a bit closer to the current price.  This period could correspond to some sideways to down action in gold.  But again, I would never ever bet on these short term predictions.