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
Today Last Price: 1286.3
Today Daily change: -2.6e+2 pips
Today Daily change %: -0.203%
Today Daily Open: 1288.92
Previous Daily SMA20: 1265.09
Previous Daily SMA50: 1240
Previous Daily SMA100: 1224.98
Previous Daily SMA200: 1229.16
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