EUR/USD and Europen Central Bank sentiment in the mix

Meanwhile, the Euro has been a little cheerier of late, also pressuring the US dollar and helping to support risk appetite and a bid into the Gold price. European Central policymaker, Peter Kazimir, said on Monday that inflation easing was good news but added that it was not a reason to slow the pace of interest rate hikes, as reported by Reuters.

Governing Council member and Governor of Austria's central bank Olli Rehn made some comments on the European Central Banks' interest rates policy during their appearances over the weekend also as did  ECB governing council member Klaas Knot on Sunday, advocating steep rate hikes. "Expect us to raise rates by 0.5% in February and March and expect us to not be done by then and that more steps will follow in May and June," Knot said.

Analysts at TD Securities argued that the gold price could struggle to firm further in the absence of the single-largest buyer of gold over the past months. On the downside, a break below the $1,900/oz range is required to spark trend-follower liquidations.