In early trading on Monday, the prices of gold (GLD) pushed lower as the dollar rebounded (UUP). The greenback was last up 03% against a basket of rival currencies that made the yellow metal more expensive and less attractive to investors that use other currencies.

In addition, market participants are waiting for clues on how the U.S. Federal Reserve will manage inflation. Members of the Federal Open Market Committee (FOMC), including Chairman Jerome Powell, will deliver their speeches Congressional committees before this week.

Spot gold is currently trading at $1,932.17 per ounce as of 0923 GMT, down nearly 1% on the day.

According to AxiCorp’s chief market strategist Stephen Innes, the market will be focusing on how Powell will try to convince the Senate to provide additional economic stimulus, which would weaken the dollar. It would also lift the bullion, which has already risen by 29% so far this year because of the unprecedented COVID-19 stimulus measures rolled out by governments and central banks around the world.

OANDA’s senior market analyst Jeffrey Halley noted that the yellow metal is still in the so-called range-trading mode, with a support price level at $1,935 and a resistance price at $1,975 per ounce. But Innes suggested that gold might not reach $2,000 because of positive news on COVID-19 vaccine trials and the improvement in global economic conditions.

However, gold continues to be lifted by the resurgence in COVID-19 cases around the world. Several European countries, including Greece, Denmark, France, the Netherlands, Spain, Iceland, have implemented new restrictions to curb the surging number of infections in some of their largest cities. But they are hoping not to follow Israel which imposed a second national lockdown last Friday, though the UK is already considering it.

In a related development, the holdings of the largest gold-backed exchange-traded fund in the world SPDR Gold Trust grew by 1.03% to 1,259.84 tons last Friday. Also, the U.S. Commodities Futures Trading Commission reported that gold speculators increased their long positions in COMEX gold to 165,251 contracts for the week that ended on September 15.

In physical trading, gold dealers in India were forced to offer discounts for the fifth consecutive as the demand remains low. Gold jewelry traders are hoping for a recovery in the upcoming festival season.