• Gold prices consolidate above the $1,750 support zone.
• A firmer USD on Fed tapering expectations is weighing on metals.
• XAG/USD's bearish grip remains intact – FXStreet Insights Team.

Gold futures have opened the week in a slightly negative tone, weighed by the overall US dollar strength. In longer-term charts, however, the yellow metal remains moving within previous ranges, supported above &1,750 so far.

Gold eases on USD strength amid Fed tapering expectations

Bullion prices have ticked down about 0.1% on Monday with the dollar firm, despite the lackluster US employment report seen last Friday. Market expectations that the Federal Reserve will stick to their plan to kickstart QE tapering over the next months have supported the US dollar in an otherwise quiet market session on Monday.

US economy added 194,000 new jobs in September, according to data released by the Labor Department on Friday. This is the poorest reading in the last nine months and comes well below market expectations of a 500,000 increase. On the positive side, August’s reading was upwardly revised to 366,000 from previous estimations of 235,000 while the unemployment rate decreased to 4,.8% from 5.2% in the previous month.

XAU/USD: the bearish grip remains intact – FXStreet Insights team

Looking from a wider perspective, FXStreet’s Dhwani Mehta, observes gold prices’ consolidation exposed to downside risks: “Gold failed to find acceptance above the short-term critical resistance of the 21-Daily Moving Average (DMA) at $1762 on Friday, leaving the downside risks exposed (…) On a daily closing below the $1750-$1745 demand area, the multi-week troughs near $1720 could be on the gold sellers’ radars.”

Technical levels to watch