Firstly, the dremel is a horrible tool if your sanding/polishing the entire peice, especially with the few attachments and grits they make for it. For tight areas yeah its good, for small brackets yeah its good, but for if what your polishing is anything larger than what i listed above its not gonna come out right. Plus the dremel spins to quick. Or perhaps yours is not spinning fast enough. When you hold the buffing wheel attachment up to the compound it is supposed to literally melt. That way it gets onto the wheel properly. You need to replenish your wheel about every 30 seconds and go over with nice even strokes on the metal. The dremel has a small contact path, which leads to the streaks you are seeing...
If your metal has even the smallest pits, it will trap the compound and appear hazy and black. Even if its super smooth to the touch, sometimes a very high final grit is needed. What exactly are you trying to polish btw? What was your prep? (sanding wise)
If you still remain stuck, might i recommend a polishing professional (moi) to do what you cannot. I am partnered with a metal polishing shop that uses professional grade equipment and material to achieve show quality shine. Let me know brotha.