Should I give this gift to the girl I love?

I'm in love with my best female friend who I've known for 8 years. I was planning on telling her how I felt but she started seeing someone right before I was gonna do it. They have been seeing each other a little over a month but she doesn't seem that interest in him. Actually I get the feeling she's interested in me (I'm not the only one to think this, a few of my friends told me this after meeting her for the first time recently). Anyway I bought her a nice Christmas gift (a digital picture frame that I filled with pictures that we took together) and was planning on telling her how I feel when I give her the gift after Christmas. But now I'm reconsidering giving it to her in case she rejects me and doesn't accept the gift. Am I overreacting? And do you think it's a good gift in this situation? Thanks and merry Christmas!