If I’m putting on my gold technical analysis cap, then this chart is probably the right way to look at it.

We had a near–parabolic run through all-time highs and now we’re in a retracement phase. Yesterday, we bounced from the 38.2% retracement of the Aug-Oct rally and today we came close to testing the 50% level.

I like leaning against that 50% zone with a stop below the 61.8% level at $3723 but on the fundamental side, the incremental dollar is piling into technology right now and Trump is making nice with China. That’s a bit of a tough tape to counter so I wouldn’t rush to buy this dip.

Caution hasn’t been a great strategy for gold so far this year though as it’s been more of a YOLO trade until recently. The bulls have proven remarkably eager to buy dips. Today we’re $80 off the lows and at the best levels of US trading. If gold can close above $4000 I’ll be curious to see how Asia reacts.