Gold has dropped back closer to a multi-week low on Monday. As FXStreet’s Haresh Menghani notes, XAUUSD bears eye break below the 100-day moving average (DMA) around the $1,878-$1,877 zone.

Focus remains on FOMC

“The Fed is widely expected to hike interest rates by 50 bps. Apart from this, traders will take cues from this week's important US macro releases, including the closely watched US monthly jobs report on Friday. This, in turn, will play a key role in determining the next leg of a directional move for the XAU/USD.”

“Weakness below the 100-day SMA, currently around the $1,878-$1,877 region, will reaffirm the negative outlook and pave the way for additional losses. Gold could then fall towards intermediate support near the $1,850-$1,848 zone en-route the very important 200-day SMA, near the $1,834 area.”

“The $1,900 round figure now seems to act as an immediate strong resistance ahead of the $1,906-$1,907 region and Friday's swing high, around the $1,920 zone. Sustained strength beyond could trigger a short-covering move towards the $1,940 region, above which the recovery momentum could get extended to the $1,962 resistance.”