Overview of Gold: $1,300 Break Remains Indefinable Despites the Weak tone in US Dollar

XAUUSD

XAU traded a bit lower against USD and closed at 1288.78.

Gold picked up a bid on Monday, tracking the weak spot 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 picked up a bid on Monday, tracking the weak spot 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.

According to the Analysis, The XAU/USD.X pair is expected to find support at 1282.62, and a fall through could take it to the next support level of 1276.47. The pair is expected to find its first resistance at 1294.99, and a rise through could take it to the next resistance level of 1301.21. Previous Day range was 12.37 and Current Day Range is 7.69.

The yellow metal failed to cross the psychological barrier of $1,300 on Friday and carved out a bearish-lower high of $1,288 yesterday, despite the drop in the US dollar – gold’s biggest retribution.

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.