Gold posted modest gains on Monday amid calm market sentiment as investors braced for monetary policy decisions by major central banks.
The Bank of Japan (BoJ), Reserve Bank of Australia (RBA), Swiss National Bank (SNB) and Bank of England (BoE) are about to announce the results of their meetings and will be the highest focus of the market for sure at the FOMC meeting.
A more hawkish Federal Reserve (Fed) bias pushed the price of XAU/USD to remain strong above $2,100.00 as well as reducing investors' buying appeal for the US dollar currency.
For now, the price of gold is at $2,160.73, which is up by 0.01% since the early opening of trading this morning.
Now, the price of the yellow metal continues to be supported by earlier speculation that the Fed will start easing its monetary policy earlier than expected. However, Bullion has fallen almost 1% in the last week following consumer and producer inflation data in the United States that surprised the market.
That has prompted a jump in US Treasury bond yields and resulted in the value of the US dollar registering a gain of over 0.69% last week. It also drags the price of gold to decline.
If viewed technically, gold is still in a positive groove at around $2,160 to $2,180. Investors predict that the price will try to lower slightly below that range.
However, excessive buying could drive the price to the highest level of the year at $2,195.15 and able to overcome the $2,200.00 level.
