Spot gold held above $2,000 per ounce, with gold's continued break higher performance supported by a weaker dollar and weaker hawkish Fed rhetoric.

U.S. data released on Monday showed that U.S. new home sales fell more sharply than expected in October, with sales down 5.6% to a seasonally adjusted annual rate of 679,000 homes.

The softer economic data further fueled bets that the Federal Reserve would turn dovish, with CME FedWatch showing a slightly higher than 50 percent chance that the Fed would cut interest rates by at least 25 basis points next May.

Gold is likely to remain entrenched near $2,000 for the time being until the Fed provides more information on its rate plans.

Next, investors' attention will be focused on Wednesday's release of U.S. GDP data and Thursday's release of U.S. PCE data, which is the Fed's preferred inflation indicator.

If these key figures continue to underperform, it will greatly fuel expectations that the Fed will stop raising interest rates and move into rate cuts soon next year. In this market scenario, gold's further rise to high levels will be a probable thing.

But in a piece of optimism, but also be cautious to guard against data black swans caused by gold in profit-taking under the risk of a sharp fall.

On the technical level, from the gold daily chart, 14 days relative strength index (RSI) in the middle line above the upward pointing, MACD formed a clear golden fork, showing that the gold bulls prevail. Gold prices are currently solidly above the $2,000/oz mark for the time being, reinforcing the bullish bias.

Short-term resistance for gold price is located at the mid-May high (near $2020/oz). Should gold break above short-term resistance at $2020/oz, this would open the door for gold to test $2050/oz.

Gold prices short-term support is located in 2000 U.S. dollars / ounce, if the level fell below, then can not be ruled out the possibility of a significant decline in gold prices to the 21-day moving average of 1978 U.S. dollars / ounce.

This is general market commentary and not investment advice.