Gold may stumble towards $1,400

CNBC's latest poll of gold market sentiment showed 68 percent (15 out of 22 respondents) expect prices to gain this week, 18 percent (4 out of 22) predict price declines while 3 respondents sees prices trading around current levels.

"With a lower dollar, Fed QE (Quantitative Easing) and markets at all-time highs, technicals are being backed up and strengthened by macro (factors)," said Matt Fanning, CIO and Fund Manager at Fanvestments in Providence, Rhode Island. "Technically, $1,333 was major resistance for a while and that was taken out."

Bullion recorded a 1.7 percent gain last week as it benefited from weaker-than-expected U.S. non-farm payrolls data, building the case for a delayed Fed taper.

The Fed may signal stimulus remains intact for longer at its two-day policy meeting this week. Market consensus points to the U.S. central bank cutting back bond purchases only in March 2014 after recent U.S. economic data missed forecasts and fears that the October numbers may be even worse due to the impact of the government shutdown.

"Tapering this year is off the table," said Scott Carter, the chief executive officer of Los Angeles-based Lear Capital. "It's doubtful that we will see any tapering of bond purchases until much later in 2014. This should provide a tailwind for gold to move up in the coming months."

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