The troy ounce of the precious metal rose to its highest level since December of 2012 at $1,711 on Monday boosted by risk-off flows. As of writing, the XAU/USD pair was trading at $1,708, adding 1.5% on a daily basis.
The risk-averse market environment as reflected by sharp declines in major equity indexes in the US allows gold to find demand as a safer alternative. At the moment, the Dow Jones Industrial Average is down 2.3% on the day and the S&P 500 is losing 2.1%.
The lack of fresh developments pointing out to a convincing slowdown in coronavirus infections and fatalities globally seems to be keeping investors away from risk-sensitive assets at the start of the week.
Meanwhile, the greenback is staying relatively resilient against its major rivals to keep the pair's gains limited for the time being.
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