Spot gold (XAU/USD) prices hit fresh multi-month highs near $1,910 on Monday during Asia Pacific session, but have again failed to hold north of the $1,900 handle. In recent trade, the precious metal has been caught going sideways in the mid-$1,890s, with the prospect for a fresh push higher again on Monday limited by the lack of market volume stateside. US markets are shut on Monday for Presidents Day so it is likely to be a very quiet US session.

Geopolitics remains the wildcard that could stoke surprise volatility in either a bullish or bearish direction. The Russian rouble has been coming under significant pressure on Monday, indicative of rising fears of a Russian invasion/military incursion into Ukraine that would trigger a round of sanctions from Western countries against Moscow.

From a technical perspective, gold, so far, has struggled to find acceptance above the $1,900 mark, though the emergence of some dip-buying favours bullish traders. This, along with last week's bullish breakout through a downward sloping trend-line extending from June 2021, supports prospects for additional near-term gains.

That said, RSI (14) on the daily chart remains closer to the overbought zone, suggesting that any subsequent move up is more likely to remain capped near 2021 high, around the $1,916 area. Sustained strength beyond will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent appreciating move.

On the flip side, any meaningful pullback is likely to find support near the $1,879-$1,877 region. Any further decline could be seen as a buying opportunity, which, in turn, should help limit the slide for gold near the aforementioned trend-line resistance breakpoint, around the $1,855 zone.

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