Gold prices are trading slightly under pressure at the beginning of a fresh week as traders await cues before making their next moves, but remain supported by the prevailing risk-off sentiment in markets. At the time of writing, GOLD is trading at a little above $1,721.

Over the past week, the precious metal gained over 2% of its value over escalating fears about the extent of recession in the global economy as a result of the coronavirus pandemic. Latest estimates predict that the global economy could contract by around 2% this year even as the pandemic rages on and countries continue to impose shutdowns, bringing economic activity to a halt.

Gold is also enjoying some support from a weakness in the US dollar index, which continues to trade close to a three-week high against other major currencies. The US dollar had made some gains over the past few trading sessions over rising expectations for resumption of economic activity in the US.

Although the safe haven appeal of gold remains in focus amid rising uncertainties about global financial markets, the yellow metal has been experiencing weaker demand among retail consumers in the wake of the lockdowns across the world. Soaring prices are also keeping retail consumers hesitant from purchasing physical gold lately, even as it remains one of the best assets for investment.