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Gold prices plunged abruptly on Monday to notch ten-week lows as the US dollar regained the bullish bias after a short-lived correction witnessed ahead of the weekend. The XAUUSD pair derailed the $1,860 zone for the first time since mid-February, losing 2.55% on the day as the North American trading session begins.  
 
The technical picture for gold deteriorated after failed attempts to hold above the $1,900 figure last week, with the 20-DMA continuing to act as the key immediate resistance for the time being. Downside risks persist while below this moving average, today at $1,932. 
 
The downside pressure surrounding the yellow metal intensified as US 10-year real yields climbed into positive territory for the first time in more than two years. The gold market has also been hit by low trading volumes as many markets are on holiday today. 
 
Furthermore, the bullion is pressured by the resurgent USD strength as market focus turns to the Federal Reserve meeting due on Wednesday. Hawkish expectations ahead of this major event are discouraging investors from buying gold even at lower levels despite persistent worries about geopolitics, inflation, and hawkish central banks. 
 
Now that XAUUSD slipped below $1,860, the latest breakdown opens the door to bearish continuation towards the 200-DMA, currently at $1,833. Should the downside momentum persist in the near term, this moving average could act as support and thus trigger a bounce that would bring the prices back above $1,900 eventually. In the longer-term, investors will continue to target the $2,000 mark.