Gold remains below $1300 despite USD demise

• Gold trades well below $1300 despite broad-based USD sell-off.
• Risk reversals flatlined.

Despite the broad-based USD sell-off ahead of the Thanks Giving holidays, the yellow metal is having a hard time rising to the key psychological level of $1300.

As of writing, the metal is trading at $1290 levels. Prices rose to a high of $1294 yesterday as the USD index fell to a one-month low of 93.21. Further, the yield curve continues to flatten as Fed's waning confidence on inflation is forcing investors to question a supposedly 'done deal' Dec rate hike.

Still, the safe haven yellow metal lacks the vigor to rally beyond $1290-1295 levels. Also, gold risk reversals show the USD sell-off has failed to revive the bullish mood in the options market.

Risk reversals

The one-month 25 delta risk reversals gauge remains flatlined around 0.12 and well below the recent high of 0.225.

Gold Technical Levels

A break above $1300 would expose resistance ta $1306.05 (Oct. 16 high) and $1313.65 (Sep. 26 high). On the downside, breach of support at $1284 (50-day MA) would shift risk in favor of a drop to $1274.40 (Nov. 20 low) and $1263.21 (Oct. 27 low).