The precious metal was trading weaker on Monday as investors’ moods remained upbeat. Equity markets continued their march higher following up from Friday’s gains. However, the ECB’s monetary policy meeting weighs on investors. Gold prices are likely to remain subdued in the run-up to this Thursday’s meeting.
XAU/USD Hugs the Support Level
XAUUSD remained weak, following through from Friday’s declines. However, prices were largely muted with gold testing the support area of 1508. With price breaking below the 1500 support, gold is now testing the lower support area of 1485. We expect the declines to stall at this level in the near term as gold prices could now move within the range of 1485 and 1508.