Gold prices recovered from five-month lows on Tuesday as worries over spiking COVID-19 cases offset optimism around vaccine developments and nudged investors towards the precious metal.
Following sharp losses in the previous two sessions, spot gold rose 0.4 per cent to $1,784.37 per ounce by 0349 GMT. US gold futures gained 0.4 per cent to $1,787.90.
Gold clocked its worst monthly fall in four years on Monday, falling to $1,764.29 per ounce, the lowest level since July 2.
“Gold has been a crowded trade for quite a while, so we’re seeing a realignment of asset allocation away from gold and towards more risky assets as the (market) sentiment is improved,” said Michael Langford, executive director at corporate advisory and consultancy firm AirGuide.
“That being said, those flows can quickly reverse again as the economic situation becomes more apparent.”
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