Gold nears $1,300 on strong dollar

• Gold is closing on $1,300 support as the Amerian dollar - gold's biggest nemesis - is looking north, having rallied for five days straight. 
• JP Morgan analysts recommend rotating money out of gold and into industrial metals. 

Gold (XAU/USD) is nearing $1,300 support and could soon fall below that psychological support if the American dollar continues to gain altitude. 

As of writing, the yellow metal is trading at $1,303 per Oz, representing a 0.22 percent drop on the day. The 1.7 percent drop from the recent high of $1,326 is likely associated with greenback's five-day winning streak. 

The dollar index (DXY), which tracks the value of the American currency against majors, is currently trading at 96.42; up 1.3 percent from the low of 95.15 seen on Jan. 31. 

Notably, DXY seems to have found acceptance above the resistance of the trendline trending south from Dec. 14 and Jan. 24 highs and hence could rise further, pushing the yellow metal below $1,300.

JP Morgan is bearish on gold

Analysts at JP Morgan believe 2019 could turn out to be an asset-reflation year, courtesy of the Fed's dovish shift. As a result, classic safe-haven assets like gold could remain under pressure. 

• JP Morgan: Beef up risk positions and unwind hedges - Bloomberg

Gold pivot points