• Gold sees a modest increase, as investors watch this week's central bank meetings.
• Focus remains on the Federal Reserve, where a hawkish stance could potentially impact Gold prices while bolstering the US Dollar.
• Recent US inflation data and Treasury yield resurgence, weighed on Gold prices.

Gold price registers modest gains on Monday amid a quiet session as investors brace for major central banks monetary policy decisions. Even though the Bank of Japan (BoJ), the Bank of England (BoE), and the Federal Reserve (Fed) would announce their decisions, the spotlight is on the latter. A Fed’s hawkish tilt could drive XAU/USD prices toward the $2,100.00 figure due to market participants' aggressive short positioning on the Greenback. At the time of writing, Gold trades at around $2,160.55, which is up 0.22%.

The price of the yellow metal remains underpinned by previous speculations that the Fed will begin to ease monetary policy sooner than expected. Nevertheless, during the last week, Bullion tumbled close to 1% as inflation in the consumer and the producer side on the United States (US) surprisingly reaccelerated, spurring a jump in US Treasury bond yields. Consequently, the Greenback posted gains of more than 0.69% last week, according to the US Dollar Index (DXY) and Gold’s slumped.