Gold clings to modest daily gains above $1,570

• Market sentiment turns sour at start of week.
• China's Xi says prevention of coronavirus outbreak is severe.
• US Dollar Index loses momentum following last week's upsurge.

The XAU/USD pair inched higher at the start of the week as the precious metal found demand as a traditional safe-haven. After climbing to a daily high above $1,575, however, the pair has retreated slightly and was last seen trading at $1,573.50, adding 0.23% on a daily basis.

Coronavirus headlines in spotlight

Earlier in the day, China's President Xi Jinping told the Chinese state television that the situation over the prevention of the coronavirus outbreak was still severe. Additionally, Reuters reported that hundreds of Chinese firms were seeking bank loans worth more than $8 billion to battle against the negative impact of the coronavirus.

Reflecting the risk-off atmosphere, the 10-year US Treasury bond yield is down 1% on the day and major European equity indexes are down between 0.2% and 0.3%.

In the absence of significant macroeconomic data releases from the US, investors are likely to keep an eye on the market's risk perception. In the meantime, the US Dollar Index is down 0.1% on the day near the 98.60 to help the pair stay in the positive territory.

During the early trading hours of the American session, Fed Governor Michelle Bowman will be delivering a speech.

Technical levels to watch for