Gold reversed an early dip to the $1672 region and turned higher for the second straight session on Monday. The momentum lifted the commodity to one-month tops, or closer to the $1700 mark during the mid-European session.
A fresh wave of the global risk-aversion trade was seen as a key factor that underpinned the precious metal’s safe-haven demand. This coupled with a modest USD weakness provided an additional boost to the dollar-denominated commodity.
Gold 4-hourly chart
Gold futures climbed Monday to mark another settlement at their highest since October 2012, finding support on the back of sharp losses in the U.S. stock market and expectations for further moves by global central banks to support the economy. June gold GCM20, +0.85% rose $8.60, or 0.5%, to settle at $1,761.40 an ounce. That was the highest finish for a most-active contract since October 2012, according to FactSet data. The move followed a 4.1% climb on Friday.