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Gold fell over 1 percent yesterday, pulling back from the key $1 700 level hit in the last session, as risk sentiment improved and the dollar firmed on expectations for global support measures to soften the economic impact from the coronavirus epidemic.

Spot gold lost 1,2 percent to $1 659,95 per ounce by 0959 GMT. US gold futures GCcv1 fell 0,9 percent to $1 660.

“It’s the stabilisation in financial markets; we see gains in stock markets, yields are edging up, dollar is up.

“So, factors which had supported gold in the last few days are now turning negative for it,” said Peter Fertig, an analyst at Quantitative Commodity Research.

Stimulus hopes and recovering crude oil prices are also leading to the recovery of risky assets and the move out of the safe havens, Fertig added.

Bullion rose as much as 1,7 percent on Monday to its highest since December 2012 at $1 702,56, after a rout in global equity markets on fears surrounding the coronavirus and a crash in crude prices triggered by a price war between top producers Saudi Arabia and Russia.

US President Donald Trump said he would take “major” steps to gird the economy. – Nasdaq.