Gold steadies above $1330, looks to close the day flat

• US government reopens as Senate approves the spending bill.
• DXY fails to move into the positive territory.
• Wall Street's upbeat performance weighs on safe havens.

After experiencing heightened volatility during the NA session, the XAU/USD pair went into a consolidation phase a little above the $1330 handle in the last couple of hours. As of writing, the pair was trading virtually unchanged on the day at $1332.

The greenback remained under a constant selling pressure for the majority of the day on Monday as investors stayed focused on the political developments from the U.S. Although the U.S. Senate approved the spending bill to reopen the government on Monday, the US Dollar Index failed to make a meaningful recovery. After spiking up to a fresh session high 90.42, the DXY lost its traction and was last seen at 90.26, where it was losing 0.25% on the day.

Despite the greenback's struggles, however, the XAU/USD pair couldn't hold on to its daily gains with the traditional safe-haven gold having a hard time finding demand amid an improved market sentiment in the NA session. Unlike the buck, major equity indexes in the U.S. cheered the news of the government shutdown ending and triggered a relief rally. At the moment, the Dow Jones Industrial Average and the S&P 500 indexes are up 0.25% and 0.5% respectively.

Technical outlook

The CCI indicator on the daily chart is inching close to the 0 mark, not providing any directional clues. Moreover, the CCI indicator on the same chart is moving sideways a little above the 50 handle, solidifying the view of a short-term neutral outlook. The pair could face the initial support at $1324/22 (Jan. 19 low/Jan. 12 low) ahead of $1308 (Jan. 10 low) and $1300 (psychological level). On the upside, resistances align at $1344/45 (Sep. 5 high/Jan. 15 high), $1350 (Sep. 7 high) and $1358 (Sep. 8 high).