Gold rebounds modestly, trades above $1,580

• European stocks register modest gains at the start of the week.
• US stock and bond markets closed on Monday in observance of Presidents' Day.
• China is planning to cut taxes to revive economy.

The troy ounce of the precious metal rose nearly $15 last week as investors continued to react to headlines surrounding the coronavirus outbreak. With the new week kicking off in a calm manner, the XAU/USD pair is consolidating last week's gains. The pair, which dropped a session low of $1,578.90, was trading at $1,581.40, down 0.2% on the day.

China voices commitment to battle coronavirus

In an editorial piece written for China's Communist Party's magazine, China's Finance Minister Liu Kun said that they are planning to cut taxes with an aim to provide companies more funds to eliminate the negative impact of the coronavirus outbreak on the economic activity.

In the meantime, China's Premier Li Keqiang told the Chinese state media that the epidemic control has shown an "active and improving" trend. Reflecting the improving risk sentiment, major European equity indexes are posting small gains on Monday.

Nevertheless, the pair is unlikely to make a sharp move in either direction in the second half of the day as the trading conditions are expected to remain in thin amid the Presidents' Day holiday in the US.

Before the FOMC publishes the minutes of its last monetary policy meeting on Wednesday, the risk perception is likely to continue to impact the pair's movements.

Technical levels to watch for