Gold bulls rushing to the exit doors

After nearing the $1,300.00 threshold on Friday, gold prices changed course at the beginning of the week, with spot shedding over $15.00, plummeting to the current 1,277.00 level, below Friday's low and pretty much erasing all of its last week's gains. The safe-haven metal was unable to benefit from early risk-sentiment, rather falling alongside with the EUR on German news than rising on falling equities.

The bright metal's decline accelerated at the Comex division of the NY Mercantile Exchange as the dollar gathered momentum against all of its major rivals, as Wall Street rallied. The commodity has failed to sustain gains above its 100 DMA, having moved above it late last week for the first time since late October, a sign that bulls are quickly unwinding their latest longs.

Levels to watch

The bright metal has now an immediate resistance at 1,283.35, the 23.6% retracement of the September/October decline, and where the price topped multiple times this November, followed by the mentioned 100 DMA, currently at 1,289.90. Beyond this last, the next strong resistance comes at 1,297.60, the 38.2% retracement of the mentioned decline. Supports come at 1,275.06, Thursday's low, followed by 1,269.92, last week's low.