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