I believe that Gold is positioned for its next cycle upwards into the 1300s. DXY is starting to show weakness due to trade war tensions between China and US. Next comes inflationary pressure due to increase prices of raw materials and Chinese products which may be curbed by the FED increasing interest rates in the coming months. Even then, Gold has been accumulating between the 1240 and 1260 region.
Things to monitor:
1) CFTC Commitment of Traders net bullish positions
2) A convincing close of the day above 1260 in gold.
3) Potential escalation of US-China trade tension and inflation.
4) Potential decoupling between DXY and Gold in the coming weeks. i.e. Gold spike while DXY remains neutral.
Entry at 1253, medium term trade with targets at 1270 and 1300.