Spot gold sees little action at the start of a week amid a holiday in the US and a risk-averse environment. The bright metal currently changes hands at around $1,710.00 a troy ounce after bottoming at $1,688.71 last week.

The American dollar advanced throughout the Asian session, giving up some ground during European trading hours but retaining its dominance as investors priced in discouraging headlines. On Friday, the Russian company Gazprom cut gas provisions to the Old Continent, allegedly due to a leak in the Nord Stream 1 pipeline. However, it was later reported that Moscow has indefinitely suspended gas deliveries and will likely maintain the closure until Western nations lift sanctions.

Another risk to global growth came from China, as the country extended its coronavirus lockdown to roughly 65 million people at the time being.

The daily chart for XAUUSD shows that the pair is still at risk of falling, consolidating below a critical Fibonacci level, the 61.8% retracement of its latest daily rally at $1,729.20. Technical indicators have corrected oversold conditions but turned flat well below their midlines, reflecting the absence of buying interest. Furthermore, moving averages maintain their firmly bearish slopes well above the current level, a sign that bears hold the grip.

The bright metal is neutral, according to the 4-hour chart. As XAUUSD develops above a flat 20 SMA, technical indicators are directionless around their midlines. The longer moving averages, however, keep heading south far above the current level. As long as the pair remains below the aforementioned Fibonacci level, the risk will remain skewed to the downside, with market players eyeing a test of $1,680.82, the low posted in July this year.

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