Besides the Brexit deal, there are few catalysts to push gold up in the short term, said Peter Hug, Global Trading Director of Kitco Metals.
"There's no real urgency here to be jumping into the gold market. I'd like to see gold close above $1,322 before I initiate another long position," Hug told Kitco News.
Hug noted that although the Fed's latest dovish stance could weigh on the dollar, which would be gold-positive, it could also drive capital back into risk assets, like equities, and away from gold.
The Fed's meeting last Wednesday removed the possibility of rate hikes in 2019, while growth forecasts from the world's largest central bank were lowered.
"I want to see where the capital flows. If it flows into risk assets, i.e. the stock market, that could put a little bit of a road block on gold in the short term. So, the key now is the dollar," Hug said.
On palladium, Hug said that supply and demand fundamentals are in line to drive palladium and rhodium prices even higher.
"I think palladium's got more room to run and it's strictly a supply-demand equation. There is some jawboning that the Russians may be withholding palladium from the market to try to squeeze the market even higher," he said. "But as we've cautioned over the past two years, we've been extremely constructive the palladium price ever since $800."
Hug added that investors should be aware of the volatility of the palladium market and the possibility of $50 to $70 moves in corrections.
"We're at all-time highs, but if we get above $1,600 and hold that for a couple of days, $1,700 to $1,800 is certainly in the cards," he said.
Hug's comments come as palladium fell from its 2019 high of $1,604 an ounce last Thursday to $1,451 an ounce on Monday.