NEW YORK (Commodity Online): There are a number of crosswinds for the gold market, said Ira Epstein, director of the Ira Epstein division of The Linn Group.

“Israel is likely to become engaged in more warfare after killing a senior Hamas leader. Whether Iran somehow joins with Hamas directly on an attack against Israel is not something I think will happen, but if they did, it would be bullish gold," he added.

The more likely scenario is that Iran backs Hamas in terms of missiles but not with Iranian soldiers on the ground.

All eyes will be on Congress over the U.S. fiscal cliff issue. He says Republicans are ultimately strike a deal, particularly since they are likely to be blamed if the U.S. slips back into recession over the issue. Therefore, “I expect a compromise, which is not in my opinion bullish for gold,” Epstein says.

Meanwhile, Greece's debt issues remain at the forefront, with some differences between the International Monetary Fund and European Union.

Epstein described himself as bullish but concerned that gold could be vulnerable to more price correction, based on technical analysis of a daily price chart.

"I am also looking at the divergence between gold and stock indices, which hasn't recently taken place but is now occurring. I see gold as a fluid market, one I want to get long, but not just yet," Epstein concluded.