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Gold: $1,300 break remains elusive despite the weak tone in the US dollar

  • Gold picked up a bid on Monday, tracking the weakness in the US dollar, but the bull momentum ran out of steam at $1,295.
  • The dollar index (DXY) fell to 2.5-month lows below the 100-day MA.
  • The yellow metal is still struggling to break past $1,300.
  • $1,276 is the level to beat for the bears.

Gold bulls may have run out of steam, having engineered a $100 rally in the last seven weeks.

The yellow metal failed to cross the psychological hurdle of $1,300 on Friday and carved out a bearish-lower high of $1,295 yesterday, despite the drop in the US dollar - gold's biggest nemesis.

Notably, the dollar index found acceptance below the 100-day moving average (MA) yesterday and fell to 95.64 - a level last seen on Oct. 22.

The greenback is indeed on the defensive, having closed below the 100-day MA for the first time since Sept. 27 amid dovish Fed expectations.

The yellow metal is still struggling to pick up a strong bid. As of writing, it is reporting moderate losses at $1,286 per Oz. Gold's inability to capitalize on DXY's break below the 100-day MA likely indicates the bulls are facing exhaustion.

Therefore, a notable pullback could be in the offing. Further, a short-term bull-to-bear trend change would be confirmed if the correction ends up clearing the immediate support at $$1,276 - low of Friday's bearish outside reversal candle.

Gold Technical Levels

XAU/USD

Overview:
    Today Last Price: 1286.3
    Today Daily change: -2.6e+2 pips
    Today Daily change %: -0.203%
    Today Daily Open: 1288.92
Trends:
    Previous Daily SMA20: 1265.09
    Previous Daily SMA50: 1240
    Previous Daily SMA100: 1224.98
    Previous Daily SMA200: 1229.16
Levels:
    Previous Daily High: 1295.03
    Previous Daily Low: 1282.75
    Previous Weekly High: 1298.42
    Previous Weekly Low: 1276.82
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Previous Daily Fibonacci 38.2%: 1290.34
    Previous Daily Fibonacci 61.8%: 1287.44
    Previous Daily Pivot Point S1: 1282.77
    Previous Daily Pivot Point S2: 1276.62
    Previous Daily Pivot Point S3: 1270.49
    Previous Daily Pivot Point R1: 1295.05
    Previous Daily Pivot Point R2: 1301.18
    Previous Daily Pivot Point R3: 1307.33

 

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