Gold pressures 1,270.00 as stocks rally on ECB

• Gold prices remain under pressure as the DAX enters unexplored territory
• Rumors about Fed head candidates´ list being reduced to two hawks, also weighs.

Gold prices are being undermined by dollar's renewed strength, now trading at its lowest since October 6th, around $1,270.00 a troy ounce. ECB's decision, to keep rates on hold, and trim QE by half, but extended it on time, sent the DAX to unexplored territory above 13,150 points. As for US equities, they hold within positive territory, but off their daily highs.

Another factor weighing on the bright metal were the rumors indicating that many of the possible candidates to replace Fed's head have been eliminated, leaving just Powell and Taylor on the run, both considered hawks, therefore willing to tighten further the US monetary policy, something that usually dents safe-haven gold prices.

Levels to watch

The metal trades below its 100 DMA after breaking below it on Tuesday, and despite a higher high today, it quickly turned read, leaning the scale towards the downside. The daily low has been set at 1,268.74, being the first support, followed by the monthly low set at 1,260.54. The mentioned 100 DMA is  around 1,280, while the weekly high was set at 1,283.23, making the area a critical resistance zone for the upcoming sessions.