Gold continues to fluctuate in narrow range around $1,490

• 10-year US Treasury bond yield edges higher on Monday.
• US Dollar Index struggles to make a meaningful recovery.
• Wall Street looks to open the day modestly higher.  

The XAU/USD pair closed the previous week virtually unchanged and started the new week in a calm manner as well. As of writing, the pair was fluctuating in a very narrow band near the $1,490 handle.

Although the 10-year United States (US) Treasury bond yield is adding more than 1% on Monday and Wall Street’s main indexes point to an upbeat start to the day as reflected by modest gains witnessed in the S&P 500 Futures to reveal a positive risk sentiment at the start of the week, the pair’s losses are being limited by the ongoing USD weakness.  

Eyes on Brexit developments

With the latest developments reviving hopes of a Brexit deal, the GBP/USD pair gained traction during the European trading hours on Monday and caused the Greenback to face a renewed selling pressure.

The US Dollar Index, which lost 1.2% last week, staged a technical rebound earlier in the day to 97.40 but changed its direction ahead of the American session. At the moment, the index is at 97.20.

The US economic docket won’t be featuring any significant macroeconomic data releases and investors are likely to remain focused on the developments surrounding Brexit and react to changes in risk perception.

Technical levels to watch for