Gold prices are struggling to attract buyers amidst expectations of a hawkish stance from the Federal Reserve and an overall positive market sentiment. The uncertainty surrounding potential Fed rate cuts is keeping USD bulls cautious, providing some support to the precious metal.

The market remains focused on the release of US consumer inflation figures on Tuesday, which will likely influence the Fed’s future policy decisions and consequently impact the USD and gold prices.

Currently, gold price (XAU/USD) continues its range-bound movement, hovering just above the monthly low reached last week. The prevailing belief that the Fed will maintain higher interest rates for a longer duration due to the resilient US economy is keeping US Treasury bond yields elevated, thereby acting as a hindrance for gold.

However, the uncertainty regarding the timing and pace of interest rate cuts by the Fed is preventing the USD from gaining significant momentum, providing some support to gold prices. Traders are refraining from making aggressive bets and are awaiting cues from the upcoming US consumer inflation data.

Additionally, thin trading volumes due to holidays in Japan and China are contributing to subdued price action in the markets.

In terms of technical analysis, gold price traders are monitoring key levels, with the $2,015 area serving as immediate support. A break below $2,000 could signal further downside momentum, potentially leading to a test of the 100-day Simple Moving Average (SMA) around $1,988. On the upside, the $2,033 area and last week’s swing high at $2,044-$2,045 are acting as immediate resistance levels.

Overall, the outlook for gold prices remains influenced by a combination of factors, including Fed policy expectations, market sentiment, and upcoming economic data releases.