Gold Price Forecast: XAUUSD holds steady near daily peak near $1,840 area, just below 200-DMA

• A combination of supporting factors pushed gold prices higher on the first day of a new week.
• G7 nations plan to ban bullion imports from Russia and acted as a tailwind amid a weaker USD.
• The risk-on impulse held back bulls from placing aggressive bets and capped any further gains.

Gold attracted some dip-buying after filling the weekly bullish gap and climbed to a fresh daily high during the early part of the European session. The XAUUSD was last seen trading around the $1,840 region, with bulls still awaiting sustained strength beyond the very important 200-day SMA.

The recent sharp decline in commodity and energy prices now seems to have eased fears about the risk of a further rise in inflationary pressures. Furthermore, some high-frequency data indicate that the growth momentum in the US is starting to cool. This forced investors to reassess the prospects of more aggressive rate hikes by the Federal Reserve, which dragged the US dollar to over a one-week low on Monday and benefitted the dollar-denominated gold.

Some countries, including the US, UK, Japan, and Canada, plan to announce a ban on new gold imports from Russia during the G7 summit ban bullion imports from Russia during the G7 summit this week. This was seen as another factor that acted as a tailwind for the XAUUSD. The upside, however, remains capped, at least for the time being amid a generally positive tone around the equity markets, which tends to drive flows away from the traditional safe-haven XAUUSD.

Meanwhile, the risk-on impulse pushed the US Treasury bond yields higher and was seen as another factor that kept a lid on any meaningful upside for the non-yielding yellow metal. This, in turn, warrants some caution before placing aggressive bullish bets around gold. Market participants now look forward to the US economic docket - featuring the release of Durable Goods Orders and Pending Home Sales later during the early North American session.

This, along with the US bond yields and the USD price dynamics, should provide some impetus to gold. Traders will further take cues from the broader market risk sentiment to grab short-term opportunities around the commodity.

Technical levels to watch