The XAU/USD pair managed to build on last week's gains and touched its highest level since late February at $1,790 on Monday. However, the pair failed to preserve its bullish momentum in the second half of the day and reversed its direction. As of writing, XAU/USD was losing 0.13% on a daily basis at $1,774.
In the absence of significant fundamental drivers, the US Treasury bond yields' performance continues to impact gold's valuation. The benchmark 10-year US Treasury bond yield, which spent the first half of the day in the negative territory, was last seen rising nearly 1% on the day. Below $1,767, the 20-period SMA aligns as the next support at $1,764 ahead of $1,760. On the flip side, the pair could target $1,790, once again, if it closes a four-hour candle above $1,775. Finally, $1,800 (psychological level) could be seen as the next target on the upside if bulls retake control of the price.